I spoke too soon...the dropouts on the toslink ARE gone, but so is the multichannel surround sound in native format. All I get on the toslink now is two channel pcm that my Integra can synthesize 5.1 or 7.7 surround from.
One step forward, two steps back. Oh..and no change in the HDMI audio...still only two channel pcm. Now the toslink is the same though
Main system: Thiel 3.6 L/R speakers, Pair of Velodyne F1500r subs, B&W HTM center, Emotiva and Polk RTi 28 surrounds, Integra DHC 9.9 pre/proc, Pair of Emotiva XPA-1's, Emotiva XPA-5, Threshold SA/4e, pair of Threshold S/200's, Oracle Delphi TT w Magnepan Unitrac 1 arm and Shure V15 - Vmr, Logitech Squeezebox Touch, Oppo BDP 83 optical disc player, Threshold T2 preamp, Denon DR-M44HX cassette, Pioneer CLD-97 Laserdisc. LG PF1500 led projector,Elite 100"tab tension-ed motorized screen.