It is a 7.3 System.
7 Conventional Channels and 3 LFE channels with an External
processor separating the 3 LFE channels by Frequency Range.
I had the same issue just yesterday. We don't watch a lot of TV so it's sits idle for a while and I noticed it was slow to come up sometimes when not used. But the issue yesterday was worse as I got the red lights as well. After I unplugged it and plugged it back in, it came up fine and we watched a few hours. The machine has only like 140 hrs on it from last August.
Anyway, I called Epson today to ask them about firmware and known issues and without ANY hesitation, nor even me asking, they said they are sending a new unit.