I don't know whether to laugh or cry, but a different HDMI cord did the trick. I totally don't get it, that cord worked fine with the receiver I just stopped using, and it works perfectly fine with the 1522 in out 2, but for whatever reason it didn't work in out 1. Tried the cord I had plugged into my PS3 and it works in out 1. Crazy!
Now another problem...using Full Auto MCACC and it's not detecting my sub. I sure hope this thing is worth the trouble it's put me through, because I am about to explode right now! lol. When I ran it last night with the other receiver everything went perfectly smooth. I went into Speaker Settings and selected YES for subwoofer, chose the 5.1 setup, but when the program runs no test sounds come from the sub and it does not detect it.