Well, I'm continuing to have this jitter / wavy problem when using the component inputs from a cold start. As stated in my earlier post, the problem is apparent on a fresh / cold start of the Onkyo. After about five minutes of warming up, the problem goes away and all looks great. I recently noticed this because I switched my DVR from HDMI to component for the living room. I've tried messing with the many signal processing configurations with no luck (source, through, 1080i/p, etc.) for both source and HDMI output. If I connect direct to the HDTV, there's no problem, thus it is indeed the Onkyo 876. My other component input source is for the Wii. I tried that as well and just noticed that it too has the same problem. The reason it went unnoticed for so long is because I recall the Onkyo had always been on (warmed up) for quite sometime before we ever decided to play the Wii (never did a cold start with it before). So both component inputs are producing the same problem. Hard to believe that both would be defective, so I'm thinking that I have something setup wrong in the menus. Anyone else have this problem? If not, can someone please post all their Onkyo setup configurations for component in with HDMI going out to HDTV? Again, the Onkyo will have to have been off for awhile for me to recreate the problem...if I just turn on and off after it's already been warmed up, then there is no apparent problem (hope that's clear). Thanks.