If a Participant takes a required minimum distribution, does this taint the remainder amount preventing a Lump Sum Distribution of the remaining balance later?

Depends.

If the employee is still working, the later distribution on account of actual separation from service may qualify as a LSD.

If the employee is not working, a partial distribution at 70.5 will disqualify a total distribution in a later year from LSD treatment.

Remember, a LSD is a total distribution "on account of" a triggering event -- usually separation from service or age 59.5. The first distribution after a triggering event must be a total distribution to qualify as a LSD. Partial distributions after a triggering event disqualify a subsequent distribution from LSD treatment UNLESS THERE IS A NEW TRIGGERING EVENT. Then the next distribution after the new triggering event must be a total distribution to qualify as a LSD.