Ok, part way there. Changed the connection on the receiver from the HDMI 3 input to the HDMI 1 input and is now recognized as HDCP compliant. Played Lord of the Rings flawlessly, however Ice Age 3 picture was scrambling. Started up Anydvd and the problem went away so still a handshake issue. Next step is a longer HDMI cable as I read that can solve timing issues. Any other ideas out there?