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Check to see if there are any software or firmware upgrades for your receiver and you PS3. This could be a handshaking issue that is easily corrected with an up grade.
I'd do some more investigation first. Have you determined if the amplifier for the channel works or if it's a preamp problem using the built-in speaker setup controls?
With this unit's great audio processing features you might be able to bypass a failed amplifier using the pre-outs and drive an external amp for the missing channel.
You could always just get a modest stereo amp (like a Carver M-100T and bridge it), or use the extra channel for another center speaker or a subwoofer, for example.
I suppose pcm light means that the pcm mode is turned on (pcm meaning pulse code modulation), in other words, the unit was switched to digital signal, so if the digital rca or optical TV input on your reciever is not connected to anything, then you're not getting any signal into the reciever in digital mode. You probably just need to switch the unit back to analog mode (see if there is a button that says something like digital/analog, pcm/analog, optical/coax or similar, try pressing it, see if there is any change).
I might just be totally wrong on this, however, probably the best way to learn what happened is to read the user manual if you do have it (see what the pcm light signals for and check any chapters inside the manual related to that topic).
I have this problem. it is caused by an o/c mains transformer primary winding. the clicking and flashing light is the stanbyy circuit trying to switch the power on to the main (large) transformer when it gets no voltage out it switches back off
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