Hmmm... still no answers. I think I will buy a new system from Sony. Based on all the issues with this unit on this forum I have come to the realization and this HT-HD1250 is best used for a paperweight. Sucks that this lesson cost $500.
I purchased this combo in May but continue to be plagued by issues. TV is connected from HDMI3 to HDMI on theater and Optical out to Optical 1 (anynet) on theater. I also have PS3 with HDMI to HDMI2 on TV and Optical from PS3 to Optical 2 on theater. When trying to get the DVD player to work I chose HDMI-CEC on the TV and turn on the theater. It never connects on the first attempt. After turning the TV and theater on and off repeatedly it will connect. However, this process takes 5-10 minutes every time. No other settings are changed. It is completely random. Same is true when trying to get the TV audio to route through the theater. Help!!!