...it's a handshake issue unfortunately. Or sometimes a bad port. HDMI is far from being the perfect way to connect components.

At least you still have the option to connect direct to the HDTV and retain the full HD effect. You also won't lose much by using digital optical to the HK since a lot of content is good 'ol DD5.1/DTS and not yet in Dolby HD (etc.). Out of curiosity, what sort of decoding is that HK capable of(?)