Ok everyone its my time to post now. I have a PS3 60GB Model that is currently connected to a 37" 37w3 Westy, and a Z5500 5.1 Surround Sound System.
The 5.1 Surround system is fully THX certified, and works without any issues. ( Very pleased ) The Westy on the other hand is one heck of a display for its price, but kind of leaves me with this question? The HDMI issue ( which btw I am also experiencing ) is kind of anoying. Which leaves me to belive that the Westy is at fault here. What I also noticed is when I slightly touch the cable in the back of the PS3 I loose the HDMI authentication, and I get a blinking black screen.
Another thing I relaized is that when jumping from 1080p XMB and then to a 1080p source like a game or BD, it works fine. When I launch Resistance, or Motorstorm demo, I get an authentication issue. Sometimes I don't have this issue. Strange right?
The Westy is v1.5, PS3 has v 1.30 installed ( which I hoped that would fix this issue ), and the receiver is capable of COAXIAL and OPTICAL.