Out of the box, the Blu-Ray player may be set to output at 480i and the composite connection. Try plugging in the Blu-Ray player with the yellow video and red and white audio connections directly to the television, and change the television to the corresponding input. When you power up the Blu-Ray player, you should see the menu.

Click the MENU button on the remote, and highlight DISC, then SETUP, then DISPLAY then RESOLUTION. Change that to 1080p.

Then, reconnect the unit with your HDMI cable directly to the television. If you're able to see the menu, then connect it back to the HT-AS720 system.

Keep me posted.