Thanks Lina for your input/ideas.
You are correct. The points in the dvd that produce this issues are extremely similar in the audio content. It is something about that sound and the dts/1050.
I doubt I got two "bad" dvds as I have played them on a friends dts system and also have played them on my system using the 5.1 analog inputs (bypassing the 1050s processing) and the sound is perfect with no static.
Which brings me to your question on the speaker cables. Since I can play the track via the "direct" 5.1 inputs with no static, I don't believe it is my cables. But for your info., they are 12 gauge monster.
I believe this has to be internal to the 1050, so I will try your ideas of playing with the crossover in combination with turning the sub on/off and see if that affects anything.
I will also try the 45a with an opt. connection although I can't imagine that is it, but I have seen stranger things.

as for contacting outlaw...Scott was right on top of my response this AM, contacted me, and is doing his own research right now.