Onkyo 605 not "passing through" HDMI video

[jpra923]

I'm bangin' my head against the wall on this one. I have a ps3 and the onkyo 605 receiver; HDMI in -> HDMI out. I have the ps3 main menu set to a white background. The menu has different shades of white to give it this wavy look. People with ps3's now what i'm talkin' about.

Problem is that when the ps3 is hooked up to the receiver that is hooked up to the TV, I can definitely see the different shades of white. There are edges at the border of each shade. Plus, the white looks yellow at these edges. BUT! When I hook theh ps3 direct to the TV, all is well and the white ps3 menu is smooth as silk. And white as...well white. I've played around with my cables and they seem to be fine. I've got some "official v1.3" HDMI cables on the way to further test this.

Is there some setting that I can play with to try and resolve this issue?
Or is my receiver defective?

Please help...