Problems with optical audio output

I am having two separate problems with my optical audio output.

The first issue is that when I select “Digital Pass-Through via Optical” as my audio output, and enable either DTS or Dolby Digital (which are the only two in the list that my receiver supports), I don’t get any audio output. In either case, I see on my receiver that it is receiving a DTS signal, but it doesn’t play any audio. If I select stereo output, then my receiver shows PCM as I would expect, and I hear the audio.

The second issue is that even with stereo audio output, I have “glitches” or “gaps” in the audio output. I have noticed this when playing music, movies, or listening to Pandora. I’m pretty sure it isn’t a network issue causing this, because when this happens during a movie, the video continues to play normally. Also, I haven’t noticed this on the analog audio output.

Is there possibly some configuration issue which could be causing either of these problems?

I had this issue last night. Im on the new 1.06 firmware. I had to check DTS and Dolby Digital,  (the only ones my receiver supports as well) and then I had to go into the system menu on the WDTV and selected reboot device. Everything worked after that!