Follow the guy aboves solution to reset your Ps3 to 480i. Turn the power to the system off from the switch on the back and then when you flip it back have the power button held down on the front of the system. This only resets the picture doesn't change anything else or erase any games, I had to do it and it works!!
The settings on the PS3 are sending the video signal throught the hdmi port. Either go through the XMB via sys settings, display settings, ... Or if you only have a low def tv then hold the power for 5 seconds (when you turn it on i belive) and it resets it. You may have to adjust the audio settings at the same time, because if you pressed yes when the HDMI was first connected, you agreed to send the audio signal via hdmi as well.
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try connecting the ps3 to the HDMI only, now when the ps3 is off and all but the single red light is on rest your finger on the on button for about 8 seconds, as soon as you touch it it will turn on but just wait a bit and you'll here the a second beep- this should reset your ps3's video output settings. Try it out, it works for me when i go back and forth from av to HDMI.
You need to connect the PS3 to the television with both connectors (HDMI and Component). Then in the display settings change it from HDMI to component and during the 30 seconds that the screen goes black you need to disconnect your HDMI cable from your playstation. Then switch to the input that the component cable is connected to on your television (ie. AV1, AV2, etc). From here you will see the countdown for the test and you can continue with these settings.
Hard Reset procedure for the PS3 (as instructed by Sony CS).
Be sure to backup your settings/games saves by doing a System > Backup on your PS3 or you may lose your game saves! Also, this is a last resort procedure prior to exchanging/returning to sony.
1. Power Off the PS3 via the power switch in back and power back on w/switch.
2. Hold Power Button on the Front until you hear 3 beeps.
3. Then go through the initial setup and then run a full Format via System > Format. (will take approx 3 1/1 hours). You may need to have our AV cables ready if your using HDMI (in case HDMI isn't detected after initial reset).
4. Restore your backup you made prior to doing factory/hard reset (optional, if you created a backup).
If you originally set up the PS3 with A,V cables it won't work on HDMI even if you set it up to and visa versa. There is a work around but you will have to call tech support. Here is a link at Sony's PS3 tech support that may help also. http://playstation.custhelp.com/cgi-bin/playstation.cfg/php/enduser/std_adp.php?p_faqid=263
I had the same problem. If you go into the system settings portion of the menu and reset to default settings, then connect your HDMI cable while the system is re-loading, the PS3 should "see" the HDMI cable and ask you if you want to connect your audio and video using that. Hope this helps.
I can't be exactly sure without more information, but it sounds like you ps3 is outputting from another port. My ps3 originally was outputting from the component/composite cable port so in order to use the hdmi output I had to do a soft reset. That makes the ps3 sense what cable is plugged into it and automatically output through that port instead of using whatever is the saved setting.
With your ps3 turned on hold down the power button for a few second until it beeps and flashes 3 times (should be about 5 seconds). You might have to try it a few times to get it to work, but you should get picture and be able to adjust the settings on the ps3.