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I ran the unit for a few days before the firmware arrived and I too had dropouts on the digital audio as well as other flakiness during that time. I applied the firmware and it has worked perfectly since. I believe they are on the third firmware update (don't quote me on this). If you haven't upgraded your firmware for some time, you may want to check with HK to see if there is something more recent.
I am actually really impressed with this machine since the firmware upgrade and use it quite a bit for both CD and DVD. Oh, and I have never had mine lock up.
Regards
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