Check out the thread "Test Tone Problems" on the 970 page, and you can compare what happened to me. Unfortunately, in my case the tweeter was fried outright and I later had to replace the woofer on the affected speaker. I don't mean to scare you away from the 970, but in the spirit of full disclosure, I thought you should know.
Have you double checked to make sure you have the current firmware? If so, be sure to restore your factory defaults.
Apart from that, I am making a point to be careful to turn the volume way down before I switch surround modes, inputs, fire up a DVD, etc.
It's pure speculation on my part, but I have observed that the no audio issue stems from the processor trying determine what surround mode to apply to the incoming signal, hence the tendency to appear when switching TV stations or inputs on the fly. Since the feedback/distortion issue is a no audio-related problem, this precautionary step is a good habit to get into.
The Kappa 7s bring back some fond memories. We used to sell the Kappa Series, RS-1Bs and even had the big Infinity Reference Series III in the front room of the shop. We often had problems with blown EMIMs and EMITs on those, so to quote Bill Clinton, "I feel your pain."
If I recall the Kappas had those big, carbon-fiber injected woofers that put out killer bass. I bet they rock on movies.

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Outlaw 970
McCormack DNA-125 (mains), Emotiva LPA-1 (surrounds)
Quad 11L (F&C) Wharfedale (R) LFM1 (Sub) w/ SMS-1
Squeezebox -> Behringer SRC2496 -> Musiland MD10 DAC
Sota Sapphire; Marantz 10B;
Video: Hitachi 42HDS52A; Oppo 971H
System Pics