Yep... it certainly was a problem (though I don't know exactly what) with my 1050. I hooked up my Harman Kardon AVR80 mkII to the 919 player. I hooked the PCM only jack to the digital input on the H/K (same config I tried with the 1050 to see if I could bypass something) and no drop outs... Joy.

If the 1050 didn't sound so dang good, I'd have returned it. But it does sound so good!
If I can keep it working!!! !@#^!#^$!^#