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I had exactly the same problem. My unit worked fine until a loose power cable resulted in the receiver being turned on and off a couple of times in quick succession and then after this the a/c in light on the rear speaker was lit but the wireless link light would not come on (and the 'W' on the main unit flashed constantly). The solution for me was basically a reboot. This is what I did; - unplug the wireless receiver - unplug the main unit - remove the digital transceiver unit from its slot in the back of the main unit - plug the main unit back in and turn it on - the 'W' won't flash as the transceiver has been removed (not sure if you if it's necessary but I made sure it was producing sound to the front speakers) - unplug the main unit again - reinsert the digital transceiver - plug the main unit back in, turn it on and set it to produce output/sound (the 'W' will be flashing) - then plug the wireless receiver back in again ...presto the link is made, the 'W' stops flashing and the rear speakers work again.
Hope this elaborate reboot works as well for you as it did for me.
To reset the AV receiver to its factory defaults, turn
it on and, while holding down the [VIDEO 1] button,
press the [STANDBY/ON] button. “Clear” will
appear on the display and the AV receiver will enter
Volume is up to high to begin with or there could be some power source close to the unit that is causing it. Turn down or turn off volume and try to do it. Thsi isn't a broken system it does happen to some units, mine included butr when I do the things I have listed it is much better. It is worse with my better sound systems.
I have this exact problem, it appears the power on/off switch no longer works. After re-setting by unplugging the unit, use the remote only. As for the display, I find that if I turn the home theatre on last, the unit works and if I turn it on first, it behaves as you described.