I have the receiver. Yes it does. It will simply pass the signal as is if its 1080p. My HP 1080p 65" DLP takes 1080p/24 and the Pioneer passes it without a problem although my display has the occasional jitter or clipping when displaying this signal. But I think that though your set does 120 Hz refresh it can't accept 1080p/24 which is why your getting that message. Turn 1080p/24 off.
http://www.guidetohometheater.com/fl...307sharp52d92/
http://www.guidetohometheater.com/fl...307sharp52d92/