Hi there,
If you assigned the same source for the two connections, i.e. Bluray, you will certainly have this problem.
When you select Bluray, it will use the digital signal from the HDMI1. But then when you push Direct or Pure Direct, it will be mixed up between the digital signal coming from the HDM1 and the analogue one coming through the analogue RCA connection.
You will need to assign the Bluray/HDMI to HDMI1 and the Bluray/RCA to CD/analogue.
So, if you want to listen to a CD, you select the source CD/analogue and when you want to watch a Bluray/DVD or listen to SACD/DVD-A, then you select Bluray/HDMI1.
I hope this will solve your problem.
Cheers,
Naass