I am finally back on track with my C-1000.
When I had called Carver Service last December they suspected the processor PCB was damaged in shipping and this type of damage was not uncommon. Here is what it took to repair the amplifier (quoted from Sunfire Corp. receipt):
1. Pulled motherboard and replaced main filter caps (takes care of intermit hum)
2. Touch up motherboard and perform all ground updates and mods.
3. Replaced processor, DB-25, and Dolby Digital decoder PCB's.
4. Reassemble, full retest and burn in.
5. Observed this unit for over a week with no OSD pop-up or other malfunctions. This condition is hard to replicate but the unit seems solid now. Sorry it took so long.
Sunfire delivered the unit to my door, everything at no cost. Although it is an older model it was purchased new from a dealer.
I am totally impressed with the service I received from Sunfire. Now I will see how the system performs.