The hesitation isn't during chapter changes, it's just throughout playback. We're talking about repeated picture freezing and audio dropout.
If I read correctly your problem, I had a similar issue with a
Phillips SACD 1000 where, for no reason whatsoever, the picture/audio would freeze for about 1-2 seconds during DVD playback. This would happen only ONCE per movie and between chapters of scenes, usually towards the end of the movie. I had to send the Phillips in for repair. I also bought the Phillips SACD 1000 at Oade..............I always frazzle and wonder about how ground shipping electronic products can do damage in some form or other.
As for my Sony C70 ES, I have never had one issue with it (i.e. no picture freezing). It has been
bullet proof through
lots of movies and
loud music.

What a machine!!
What I recommend is to see if OADE can exchange your unit OR give you credit for 2 way shipping and credit towards the new upcoming units.
As a user of many Sony
ES products over the years, I have always had great experiences with reliability and performance. I'm sorry to hear when a person has a lemon with any brand or model, but that is the crapshoot with electronics of all sorts these days.......Plus the frazzling shipping! Have you ever seen UPS guys handle stuff in their warehouse?
Good luck in getting your problem resolved!