Granted I haven't run any updates yet, but i found the problem manifesting itself in new ways:

Watching FiOS cable, with it hooked into the 1070 via optical 2 on Video 2, if I switch to On Demand with the FiOS remote to view what's out there, I've lost audio. It starts working only if I power down the Outlaw and power it back up.

Switching surround modes...if I'm cycling the surround modes, I sometimes won't get audio in certain modes like Dolby Digital or Stereo 2.0. But if I cycle through the loop again, it will work the second time around.

These are the new methods I'm seeing the problem. The old method to get it to occur is when I load a DVD into the Xbox to watch a movie. I'll have sound (Optical 1 set to Video 1) all the way up until the DVD initializes, and then it drops. I have to bounce off input DVD and back and sometimes that fixes it, or cycling the power on the Outlaw will fix it. It's a minor nuisance but sometimes a little embarrassing when I'm showboating the system to family