Does the balanced output of the Sony SCD-1 invert

The early version inverts, the later one doesn't. The later one has a little symbol ("D" if I remember rightly) under the display.

Remember, the SCD-1 is not a true balanced design. The balanced signal is created at the output stage. Unless you're running long cables there's no advantage to the balanced outs - in fact the single ended outs have less circuitry in the signal path.

If it does invert, and you don't want it to do so, just reverse the (+) and (-) signal connections at the XLR output connectors. If you do it at the speakers you will invert all the other sources.

Agree with Eldartford, and it's an "R" not a "D" under the display - memory is the second thing to go!