If ALL of the lights that are on a dimmer switch are doing that, I'd say it was the switch.  I'm not much of an electrician, but that's the only thing that comes to mind to me.  In the meantime, I think I'd be looking for the fuse that goes to those lights and pulling it until the switch can be replaced.

Can't help you on the muting situation other than to wonder if there's something wrong with the remote.  Test that by putting the remote out of line and out of sight of the player after starting it, such as taking it to a bedroom storage compartment and putting it there.  If the muting still occurs, I'd suspect the player.

Terry