Saw the post on this thread tonight. I reported this issue to K-Scape shortly after the blu ray players were released, and was told it was a software issue. They reportedly thought they fixed the problem, which turned out not to be the case, and I re-reported the issue. It has been elevated to the upper tiers of the engineering staff I'm told.
Also, I reported this issue on the user forum:
http://www.kscapeowners.com/forums/showthread.php?p=5972#post5972
This has been a relatively unreported issue on the forum, as I think many users are not passing uncompressed bit rate audio to an audio processor.
Some specifics: It doesn't matter if the disc is imported or not; playing from the tray is an issue as well. I have two M500 players, and the behavior (audio dropouts) is identical. This was also reproduced by my dealer Definitive Audio in Seattle. This is a Kaleidescape Blu Ray player issue, not an audio processor or networking issue.
Unfortunately, this problem makes watching some blu rays un-watchable on the K-scape player, and I have resorted to using my Playstation. The worst offending titles are DTS Master Audio. Recent releases include Iron Man 2, Sherlock Holmes, Robin Hood, and Toy Story 3.
I have a lot of faith in Kaleidescape, and hope for a software fix.
With regard to your Pronto remote, I am using a TSU 9800 touch panel with my m500 players without a hitch. Have you installed the latest firmware in the panel, and the latest version of Pronto edit? Check with remotecentral.com
Dave Little