I got my replacement receiver yesterday and unfortunately this one exhibits the same behaviour as the first, a darker picture over component and a constant focus/out of focus image when using S-video or composite cables. So the odds of me getting 2 receivers with the same defect is pretty slim so this has to be a flaw in the software or hardware. It still bothers me that I seem to be the only one with this issue.
Swapping cables didn't fix the problem, switching to different inputs on my tv didn't fix the problem, going both direct to my tv and through my surround sound processor didn't make any difference. Using the same cables I have tested with I connected them to my VCR, DVD player and Xbox and none of those have the problem I am seeing with the receiver.
I guess it is possible there is some odd incompatibility between my tv and the receiver but that's unlikely. Does anyone else have this receiver connected to a Pioneer Elite PRO-150 tv?