When I turn my PS3 on the screen is frozen... I can hear audio sound effects while I browse the menus but can't see what I'm doing. I can turn it off but when I turn it back on it's frozen on the same screen.

check your connnection to the tv, unplug cables and reconect.. turn everything before that

Ps3 Yellow/Red/Green Light Repair Guide

First thing to try is a video reset.

While the PS3 is off (red solid light) hold down the power button until you hear the SECOND beep, quickly release the power button.

Let me know what happens.

try turning it off then going into safe mode and restoring it to get to safe mode hold the power button on ps3 till you hear 3 beeps and it will turn off again then hold it again till u hear a double beep and thats safe mode try #2 and #4 on the safe mode screen

when the system is powered on hold the power button down until you hear it beep twice, I am unsure if this is what you were talking about or not but it should reset the system to factory settings

Try unplugging everything and let it sit. From what im hearing, this sounds like a screen freeze up. 

MAKE SURE YOU HAVE ALL THE AUDIO SELECTIONS ON UR PS3 CHECK THE BOXES ,,IN THE AUDIO SETUP

This is sounding like a faulty Video Card - The game is running smoothly but the video has frozen it is unfortunate that you have encountered this as it is a particually rare problem with the PS3 - However if you contact Sony support and are still under warranty they will replace it for you - I hope this was of some help to you and hope you have better luck in the future,

Regards,

Blazamane

This is a major problem caused by this update, some wont read discs, other wont load the menus. Consult the Sony website for updates or solutions but a popular solution is to enter recovery mode on the ps3, which restarts ps3 totally but formats the ps3, losing data. If you think this is viable, i have linked to the process but here it is:

Turn off Ps3
Hold the power button down; the system will turn on and turn off once again
Once the system has been shutdown, re-press your finger until you hear dual beeps
When you hear the 2 beeps remove finger power button
You will be asked to plug in your controller and press the ps button
This will enter recovery menu, which is:

Recovery menu
- restart system
- restore default settings
- restore file system
- rebuild database
- restore ps3
- system update

Each setting does a different function, consult the manual or PS3 site for consequences but be warned: YOU RISK LOSING ALL DATA IF YOU DO THIS. BACK IT UP. This is not a proven fix for this issue as it is the update which seems to have totalled many PS3's but has proven effective and worked when my discs stuck on title screens, i selected first restart system, then restore default settings the 2 times i have done it and it fixed the ps3 but i lost all of my data.

It seems the Denon and PS3 don't play nice together on DTS. If you take off the DTS setting, then the PS3 will use DD and you'll get surround for games and movies.