Have gone through all the posts here and dint find an issue like mine.
I've been using the AVR for over a month now. This is my first HTPC setup and so far am very impressed. Energy RC-Micro 5.1 sounds great to me

I have my PC and PS3 connected to the AVR. PS3 is through HDMI and output is set to PCM(have read tat its better to leave the decoding to the PS3 and i dont have any preference to see DTS light up on AVR

).
I am generally happy with the audio quality from music,movies etc. I noticed that Adaptive DRC -> off and Dynamic Range -> Maximum are the best settings for my ears. I used YPAO to setup and modified the levels and distances a bit and PEQ setting to "Through". Dont use the Presence speakers too. Can the sound be impoved with setting PEQ to flat/natural etc and Presence speakers to on ?? What settings do you guys use ?? Please discuss.
Here's the issue.. I have noticed that there is a lot of lag when playing on my PS3 especially FPS games. I've been getting my ass kicked all over the place in BF3 and i absolutely hate the laggy aiming.(I know i cant suck tat bad

) My guess is its about 200-300ms off. My display is the Samsung D6000 32" 3D LED TV. I switch on the game mode which helps only a little bit. Before i had the AVR, the PS3(HDMI) was directly connected to the TV and when game mode is on i had no noticeable delays. Now the middleman AVR has introduced the lag. I read in lot of places.. this is the issue these days with these components coming in between and adding their processing/delays. I have turned off the processing etc in the video setup(which should not touch the 720p/1080p signals anyway, as per OM). Anyone else facing lag. I did not anticipate such problems after spending so much and setting up a game room. The only workaround i can think off is adding a optical cable for audio and HDMI video directly to the TV. Then i get only 2 channel PCM cos of optical cable limitation and will have to bitstream. Is there a noticeable difference if i do this. Any other workarounds to reduce lags ? Hasnt anyone seen this issue. Should i change the HDMI cables ? Is lag introduced in the cable ? I know display cant be affecting this cos before the AVR everything was fine. Please help guys.