Yo. I have the same receiver and I am having some weird problems too. Watching Insomnia, the surround channels are all mixed up. Now the right speaker puts out what the center speaker should. The other speakers are all pretty faint, yet on. I tried messing with the PS3's settings, no luck. I switched my sound output to an optical cable, and the sound kept going in and out and on the screen of the Denon, the connectivity kept connecting and disconnecting. My Blu Rays work just fine, games just fine, only Netflix is all screwed up. This blows. I also have an original Big Monolith PS3. PS3's have had problems before. I owned Sunshine and the picture in picture behind the scenes function could not be shut off while watching it, so I couldnt even watch the movie itself. It took a dedicated page and about a thousand people on Facebook with the exact same issue all bitching, to get Sony to realize and accept there was a problem, and they sent us all a newly formatted Sunshine disc, which turned out to be the problem, because it conflicted with a PS3 firmware update. My guess is we with this early PS3 version are kinda screwed, and since it is at the end of the console cycle in the next year or 2, it is unlikely this problem will get fixed. Maybe another firmware update will fix it, maybe not. Maybe if we form another Facebook page about Netflix/PS3 woes, and get enough people with the same problem, they again will listen and take action to fix the problems. I just wanted to let you know what you werent alone....