Thanks to everyone for their suggestions.
I picked up another 60 gig PS3 yesterday and a longer HDMI cable to connect directly to the projector overhead. After additional trouble shooting, turns out the connector on the in wall cable at the HDMI router has gone bad due to stress on the connector. The end of the connector literally fell off.
I have no idea who the bozo is who designed this piece of crap, but HDMI has no strain relief nor any lock down screws like practically all other multi-pin cables. If you can't tell, I am pissed. Thank you very much.