It is still in warranty so I took it to Circuit City who will send it to their repair center. I was curious if this was a problem for this receiver model. Seems like there is some negative feedback on the reliability of Onkyo products.
I reinstalled my Sony ES 7.1 channel receiver and it works perfectly with the same components and cables, so I suspect there is a problem with the Onkyo receiver.
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Onkyo directed me to return the unit to a service center. Apparently this is a known issue and after reading web postings I believe it. There were dozens of similar cases with a variety of Onkyo recievers. I was able to remove the ribon connector from the headphones and discovered it is not a shorted headphone detector. We will see what the service center does. I'm not looking forward to paying for shipping a 66 lb receiver.
If you have disconnected all connections from the receiver including your sources and the unit shuts down and goes in protect then there is an internal shortcircuit on the receiver and you would need to send that to an authorized service center. Now, since you just bought it 4 days ago, if you purchased it from an authorized dealer of Onkyo you could have it replaced since its way within the 30 day return policy. But, if you have purchased it from circuit city, unfortunately your option would only be the service center for repairs. If you send it to an authorized service center, you would need to put in a copy of your sales receipt together with a brief description of the issue you are encountering. Where did you purchase your 806?
Resetting the unit MAY work, however you will reset everything to factory and have to set it all up again. If resetting does not work, sounds like you will be looking for your local, friendly rrepair shop. Onkyo carries a two year warranty on these units, hopefully yours is still under. If not I would contact ONKYO directly because it seems they have had A LOT of problems with the screen on the 805 and 875 models