Hi Jim,
maybe it is the squeezbox...
I just don't know
I did a few tests...
My DVD and CD player are a single unit posing as two...
DVD input with surround presets
CD input with stereo presets
And depending on the source...
it sticks...
I've noticed
if surround info is present on the CD input...the 1070 seems to follow suit...
and engages a surround modes
(seems like the last one selected)
if a stereo signal is detected...stereo stays put...


One last thought...
Does your squeezebox apply some kind of weird 3D surround, bass enhancement or something to the signal ?

I wish you the best...
Good luck...
_________________________
Outlaw 1070-Mirage M-290(main)+MCC(center)+Omnisat Micro(sides) nanosat(back)+ +PS12-90(sub)-Technics SL-5 turtable+Cambridge Audio 540P-HTPC - SamsungDTB-H260F HDTV tuner - Optoma HD 20 +100' Draper screen -lots of spaghetti and toys