Brubacca's "no audio" problem was unrelated to any software problems in the 970 - it related to a shortcut in many digital cable boxes (analog channels not being converted to digital, leaving the digital output dead when on an analog channel). It does sound like John151 and iardon have seen the same behavior you are reporting. The 970 and 1070 are the same basic platform, so it seems unlikely that the "no audio" problem is common considering how many of the two units have shipped since late last summer - which means that it is possible Outlaw hasn't had many reports and hasn't been working on the issue long. By all means, give them a call or contact them online, as your experience can help them determine the cause.
Do you have any IR repeater hardware set up? I remember hearing that it is possible to confuse some components that get the same command from the IR receiver and from the rear IR input.