Blu-ray compatibility issues???

[debaser2]

So, I'm coming up clueless here. I just bought a Sony BDP-S360 Blu-ray player and when I try to hook it up to my Magnavox 37MF231D/37 using the HDMI out I just get static/noise. The intro screen with the Blu-ray logo comes on and then static. I used component cables and those work fine. When I go into the output settings on the Blu-ray the option for HDMI is grayed out and not selectable.

I tried the Blu-ray player on a friend's tv and it worked fine. I have a normal upscaling DVD player with an HDMI out that I can connect to my tv and that works fine. So I've basically ruled out the cables, the player itself (as it works on a friend's tv) and the HDMI port on the tv (as it works with my upscaling normal DVD player).

Is there any reason why this wouldn't be compatible with a Sony Blu-ray player???