Here are the two answers to my questions from Edward in tech support:

1. Response to original issue:

"I am sorry to hear you are experiencing a problem with your Model 950. By any chance,
did you program your HTM learning remote control with the Outlaw remote? Or did you use
predetermined downloadable codes? Are there any infared adapters connected to your
system such as IR flashers/repeaters, any equipment connected to any of your IR input
jacks, or any other remote control systems? Do you have a plasma, or any other type of
flat panel television? These can all introduce possible problems and IR interference.
To completely eliminate any possible interference, try turning off all of your other
equipment, the lighting in the room, and try to use the remote control again.

If the problem can't be narrowed down to just the remote control, we can certainly take a
look at the unit here while it is still under warranty."

2. Response to my further queries regarding flat panels.

"Interference caused by flat panel display devices are unfortunately just inherent to the
technology they employ. They are both very susceptible to interference, and notorious
for causing electrical and IR interference. Now that flat panel displays are VERY
rapidly replacing older tube and rear projection technology, the problems are becoming
more common knowledge. There are no incompatibility issues, or even any real
predictability, you'll just find that something may work intermittently. In this case,
your particular TV, setup where it is, positioned where it is, is interfering with the
narrow band of IR frequency that needs to make it to the Model 950.

Positioning the Model 950, or the display may make all the difference. Keep in mind
though, that it is not a line of sight issue, but one of general interference so
positioning the equipment will be somewhat of an amorphic process.

There is equipment you can use to filter this as well under the worst conditions. There
are a few different products offered by the following company. If you scroll down, you
will see Plasma, and LCD proof IR receivers:

http://www.xantech.com/products/ir_products.htm#

Thanks and Regards,

Edward"

I have used Xantech gear with the Model 950. It works well. This page has some good prices right now on these sensors, including a plasma-friendly version for $105 and a CFL-friendly version for $50. They also offer an LCD-friendly version , but it's not on sale at the moment. Any of these should plug right into the Model 950 if you didn't want to do a full IR distribution setup.

^^You will need to buy the power supply for those receivers if you want to plug straight into your 950, they don't come with one except in kits.

I've found that the interference from LCDs dies off after about 2-3 minutes (my son calls it the "christmas tree" when I turn on the TV and all of the emitter LEDs light up for a bit), but if not, an alternative is to move the receiver 2+ feet away (although it's awkward in practice). If you want to get the LCD proof item, you can get it here for $94 when you add the brick.