Here's an e-mail I received from Outlaw Audio on this issue. It's a 1050 issue with nothing to do with the V880:
"Dolby Digital EX is a special Dolby Digital surround track that contains an additional sixth channel of information. This sixth channel is designed to be played back in a center-surround speaker. The symptoms you are describing are most likely caused by the Dolby EX flag encoded on Dolby EX DVD's. To resolve this you must enter the 1050's speaker configuration menu and select 'CS' center surround to 'ON'. This will allow you to play EX encoded material with a 5.1 speaker array without experiencing the momentary dropouts. The following is being reproduced here but was originally posted in the Saloon:
When the Model 1050 was developed almost 4 years ago the design team implemented format flag recognition software that was fully compatible with the then-current DD EX technology. We tested the unit with the discs and test material that was available at that time for certification purposes. Unfortunately, one of the down sides of being so ahead of our time was the fact that the first discs that had the final version of the flag were not released for almost three years after the 1050 was introduced, and during that time it appears that Dolby made some modifications to the original flag software in a manner that makes some EX discs incompatible with the Model 1050 s internal software. This is not a fault of either Outlaw or Dolby, but rather an unfortunate by-product of trying to hit a moving technological target. Since the Model 1050 is not, nor has ever been, advertised as upgradeable we regret that we are unable to revise the software to accommodate the changes that occurred after the product was certified and put into production. Please keep in mind that this issue is only relevant when your system has a 5.1 speaker setup; systems with six speakers are not affected. For those with only five main speakers, the easiest way to get around any flag-related issues is to simply listen to the disc's DTS or PCM soundtrack, as DTS and PCM tracks do not produce this issue. Fortunately, virtually all of the discs that contain the EX flag also offer a DTS sound track. Of course, we might also suggest that you consider adding a sixth speaker so that you will not only resolve this issue but enjoy the full 6.1 soundfield provided on the disc. I am confident that selecting 'CS' in the speaker configuration menu will prevent the audio dropouts that you were experiencing."
Hope this helps.