Steve,
Your experience is far more common than most people realize and something that I have had to deal with personally. I even owned that original Toshiba HD-DVD HD-XA1 myself and the fact that it would stop whenever it detected a loss of HDMI handshaking (like when you switched momentarily to a different input on your receiver to check out a ball score or something else) was extremely infuriating.
As I mentioned before, combining multiple HDMI inputs to feed a single display is fairly straightforward (but not always painless) but the other way around - dealing with multiple HDMI
outputs - is far more complex. The problem is that these issues don't surface until people go beyond a simple 1 HDMI wire connection. The more HDMI components you add to the mix the more you must play by the HDMI rules in order for everything to connect and stay connected. Constant polling of the signals by the HDMI connection device (not really just a simple switch) is essential. If you try to use switches in applications that they are not intended for, you are asking for trouble.
I've had many conversations with Jano Banks (Mr. HDMI - or at least half of the team) on this very issue and that's one reason he chose me to beta test the Radiient Repeat-6 unit that, so far, seems to solve this issue. I wish I had a dollar for every time someone told me that HDMI works just fine and what am I concerned about? Invariably, these people are connecting one HDMI source to one HDMI display (or, perhaps, using a multiple input switch to feed a couple of HDMI sources to a single HDMI input on the display.) They don't have a problem because they don't have a more complex set-up (or they don't own a Toshiba HD-XA1)
Seriously, the HD-XA2 has greatly improved the "stop" problem as well as speeding up the boot-up sequence. It's still no speed demon but its a lot better than my first HD-DVD player was (at a lower price).
HDMI is still in the formative stage at this point and some people have to realize that it's not fully analogous (no pun intended) to connections involving non-HDMI devices.
But things are getting better here on the bleeding edge.
P.S. Here's a quick "hint" if you don't get signal output at a second HDMI output after switching to it. I've often found that if you turn the HDMI "switch" off (by physically removing power to it) this sometimes will allow the signal to get through. The reason for this (as Jano explained to me) is that when you remove power from the HDMI box and then turn it back on you force a reset and a repolling of the inputs and outputs (something that a repeater rather than a switch would be doing all the time.) This seemed to work for me about 80-90% of the time. Certainly not a way to conduct HT business, but sometimes a band-aid if other options aren't available.