Originally Posted by batpig
interesting, I should note this over in the 1909/789 thread and see if others get the same result.
I never even thought to suggest that as a solution, I almost just assumed that most folks leave it at "Auto" as it is. My PS3's HDMI setting are all set to Auto and everything works without a hitch. I have an AppleTV though as my digital music transport so I've never tried MP3's from the PS3 to verify.
More info.......I think I discovered part of the problem, which lies in using the PS3 to play a blu ray disc. When the disc starts playing the Denon panel correctly shows "MultiChannel In", and all is good.
When you finish watching the disc is when the problem arises. If you try to play music after playing a blu ray disc, the either the Denon keeps seeing the audio signal as Multichannel, or the PS3 keeps reporting it to the Denon as Multichannel, but either way the Multichannel stays lit on the Denon panel and is locked in, you can't do any audio processing at all other than switching to stereo or pure.
I made a mistake in how to correct the problem.
You need to go to sound settings, then audio output, and choose optical, not hdmi. After choosing optical, then switching back to HDMI if you're watching the Denon front panel you can see it change from multichannel to PLIIxx music.
I originally thought this might be happenning because the receiver was set to Auto for the surround sound mode, which automatcially switches to the last mode used for any particular input, but after I switched Auto off, it still continued to happen.
Not sure it this is a PS3 problem or a Denon problem, but if you can follow what I wrote above you should be able to recreate the issue and then fix it.
Hope this helps people