I have a brand new 970 built after the software update (I believe) since it was purchased in (2007).
I bought it when they had it for $299 with a amp package deal.
My original 970 is from 2006 and I am in the process of updating it. In the mean time I pulled out this brand new out of the box and set it up and here’s my problem.
When I turn it on through a universal remote (and it goes to video source), the volume is set at -55 which is what I have it default to. When I attempt to turn the volume up it whacks out and goes to random levels like -43, then -35 but no signal or volume id heard even after switching input sources.
If I turn it off and back on, it works fine. It only happens the very first time I turn the power on after sitting for awhile. Never had this problem with the other 970.
Any opinions?

Well I called tech support. They seem to think it's a bad capacitor. He said they can fail after awhile. I told him NO, it never failed, because it was never used. It was sitting in an unopened box since 2007 as a (and get this) a backup in case my original 970 ever went bad. That's when he said well, they can also go bad from sitting. Really? Thought I was so smart to buy a backup for $299 but looks like the joke is on me. Not very happy right now, knowing I have to spend even more money to fix something that never worked in the first place.

"Electrolytic capacitors are conditioned when manufactured by applying a voltage sufficient to initiate the proper internal chemical state. This state is maintained by regular use of the equipment. If a system using electrolytic capacitors is disused for a long period of time it can lose its conditioning, and will generally fail with a short circuit when next operated, permanently damaging the capacitor."

Update:
I heard back from Outlaw and they explained the above to me, which I wasn't aware of. It will be useful to know for the future.
More importantly, although I may have come off as harsh, it was more disappointment that I had purchased a second 970 as a emergency replacement and it kind of backfired on me.
But Outlaw is offering a compromise on the cost of repair which is fair considering the unit is technically 6 years old but never opened.
I just wanted everyone here to know that they are attempting to make it right for their loyal customers.
So in the end it will still end up costing me a little for repair but I will have a working 970 that I will use this time.
Thank you everyone at Outlaw for your exceptional customer service.

Wow, that's a new one on me.

However, like most things the answer is on the internet. I found this paper that describes in great detail the leakage characteristics of electrolytic caps including a blurb on the storage problem.

Basically the caps break down when not powered but self-heal when energized if the break down isn't too bad.

Yes, electrolytic capacitors can be self healing. But, in my experience, once they have failed they will continue to fail more and more until they completely break down.