So I used the ps3 last night for about 30 min with no problem. This morning turned it on to download something and for some reason the sound is working semi ok(the sound clicks in and out every min or so) and there is no picture. The hdmi cables are brand new and changed the input on my reciever to see if it was that. Pretty much isolated the problem to the ps3. I've had one ps3 go bad before but I didn't experience this type of problem when it started to go bad. Anyone else have this happen?

I know you say you isolated the problem to the PS3 but did you try to swap the HDMI cable? Always the first step, even with a new cable.

And bypass the receiver (go straight to the TV)