Regarding audio drop outs: because I have another HT with separate BR and HD DVD players into an Onkyo SR-606 AVR, I refused to tolerate the audio drop outs in my LG based HT. After much research. I learned from articles in the Audio Engineering Society, as well as a double blind experiment in Home Theater Magazine, that the differences between core DTS and Lossless DTS Master Pro were either indistinguishable or minimally different in properly controlled scientific experiments. In no case could people identify the "better=lossless) codec consistently.
Armed with that info, I ran HDMI AND Toslink to my AVR , and use the Dolby 7.1 PL11X decoder to create a flawless and exciting sound track. No drop outs. no issues. And I am watching the movie and listening to the musical score, not watching my video technology and listening to a lossless track that is supposed to be what the movies play.
I am freed from the burden of a failure of technology.