So, to update the Service Center repaired by soldering the HDMI board, picked up in late November, started doing the same thing here in January, took back to the Svc Cntr and with some cajoling got Onkyo to re-repair under warranty, we're waiting for a replacement HDMI board now
I've got a defective 1007 too, the no sound problem started a few weeks ago, progressed to where I had to unplug after an hour or two, today no sound no matter what I do. My unit is in a closet with a fan on top of it AND an exhaust fan in the closet.
I use XLD for this too, love that it sucks tags into iTunes automatically.
I want to point out for chef that the latest iTunes has an option to automatically compress anything you put onto iPad/iPhone to 128kbps AAC on the fly if you don't want to waste space with a duplicate copy.