My NAD 762 does the exact same thing, and I have fed it with digital outs from CD/DVD players made by Sony, Denon, and Pioneer. Oh...it also does the same thing when I feed it the digital out from my Apple TV.
You rarely notice it with DVD's, but its a PITA with non-live music CD's. There is no solution other than to use analogs, which is what I have done on the rare occasion I listen to music on my HT rig.
Brian
PS: If Rotel blames the Denon, it makes me wonder if a Rotel/Rotel combo would have the same issue. I do have a Rotel 1072 CD player, but it is not in my HT rack, so testing would be a bit of a PITA.