Right, I was suggesting a work-around. IMO the 976 is much, much faster in acquisition time with detecting the digital signal than the 975 was.

Much faster, yes. But how about a goal of 0 delay? The 990 had no such delay, like I'm sure all external DACs have not. Could you imagine the outcry if an audiophile DAC costing over a grand had such an issue?

Sorry to be persistent about this, but I find this is a major flaw, and that a solution should be found and offered!

The functionalities and sound quality of the model 976 however are really great, and Outlaw should be lauded for that!

"Major Flaw"?? I wouldn't necessarily say it is major, although it could be somewhat annoying. The only way to fix it would be to introduce some sort of delay in the sensitivity of this feature. 5 seconds would probably do it. I would think that a FW update would be required but don't know how hard it would be to implement. I am also not sure why this doesn't happen in some pieces of gear.

I'm told that Oppo players outputs a constant bitstream even when there are gaps on the disc or between files.

What I wonder is why the fade-in is needed. Since the data are really there (in the duration of the fade-in), then why not let them play at full volume?

I don't have the issue with my OPPO BDP when playing a disc but then again I don't have a 976 either.

What disc player are you using? I tested my OPPO 205 as you requested awhile back at the AVS Forum owners thread using an optical connection and it was fine.

To the previous two posters, I said clearly that the Oppo players are **NOT** affected by this issue, hence you can't have the issue.

I also described the equipment I used to do tests just a few messages higher. I have the issue with a Tascam Cd-200, a Yamaha BD-S677 and a computer.

Sorry. I did not see your post about your equipment. No need to get mad. Just trying to help.

On some CDs, maybe 30% of them, the 976 will "lose the signal" in the silence between tracks, and when the next track begins, there is a short delay before the sound un-mute and resume with a fade-in, resulting in a loss of half the first second of the track. The same behavior is hapening when playing files on iTunes in a computer, via Bluetooth. I find this highly annoying. In pop/rock, it's often the first drums hit that is outright obliterated!

Deromax, I tried to duplicate this and could not. The only CD in your list that i own is Dire straits On every street. I played several tracks from it, and 5 other cd's, through the Marantz CDplayers coaxial digital out. I also used my Oppo players HDMI and analog outputs playing the same discs. I also tried bluetooth with my phones song playlist - nothing !
I have never heard this phenomenon you describe on anything i own !
Sorry, I do not have this problem - wish i could help !

I don't think it's a major flaw by any means. You already stated this is your first experience with an HDMI-based processor. IMO HDMI is primarily for HT applications, rather than music.
A solution is found and offered, which you haven't acknowledged reading. (my previous post) All the music you described, is PCM stereo coming in. Why not bring it in via the analog inputs. There are no issues with an analog connection. This is because a pre-pro or AV receiver will require a brief amount of time to detect the digital signal whenever the signal is momentarily lost.
Some of the latency may also be attributed to certain source devices. As you mention the Oppo I use handles this very well. This may not be true for all source devices.