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It sounds like this TV is being used only for the PS3. We'll need to troubleshoot this through a process of elimination.
If you're using Component Input 1 and audio, try using Component Input 2 and audio instead. If this set of inputs provides working audio and video - you can stop. Or, try going back to Input 1 once more. If Input 1 now works - you may have simply made a better connection. If it doesn't - then there's probably an issue with input 1 on the TV.
If moving to Input 2 above still didn't solve the problem, you should try using a different set of audio cables between the HDFury and the TV. If it now works, the original audio cables are faulty.
You can check the HDfury setup on another HDTV with component inputs with it connected to an HDMI cable. if the HDFury wors, you know the device and all the cables work. If you do this test and it works with your PS3, then you know that the PS3 is providing good video and audio signals via HDMI. If the problem follows the PS3 - then it's the PS3 at fault. If everything works perfectly on the second TV, then there is some issue with the audio amplifier / inputs / speakers of the Mitsu TV. You could get a cheapo stereo amp and speakers - or a set of computer speakers for audio - it all depends on how much you want to spend for sound.
With some of these elaborate setups, the receiver overrides your settings and connections to configure a default arrangement for certain functions. The rationale for this is often buried obscurely in the equipment instructions. You may have to resort to trial and error, connect and disconnect to get a satisfactory result.
There are many options here. Most HDTVs today have analog audio and digital audio output jacks. You can use RCA audio cables or a 3.5mm connector, whichever your HDTV has to connect the analog stereo output of the TV to any number of devices such as a stereo/amp which has speakers attached. You could also connect an FM transmitter to the TV and send the audio wirelessly to a nearby FM radio, boombox, portable etc. Most HDTVs today have a digital audio output, typically optical, which uses a digital audio cable ($15) to connect to a surround sound receiver. You can also connect the stereo analog output jack on the TV to a 2.4GHz transmitter and receiver speaker combo to get wireless audio outside, in a swimming pool and so forth, all around the house using wireless speakers. These setups usually cost around $150 or so. Look for the jack on the TV labeled AUDIO OUT and see if it is the white and red 2 jack ports or the smaller 3.5mm single jack port. Adapter cables are available at Radio Shack for around $10 should you need them. So you see the options are almost endless.
With what signal did you try? Maybe your signal source (DVD/TV or radio) didn't contain any sounds for the center channel. Go to the Setup menu, Speaker setup / Manual setup and find there item called "Test tone". It will output a test tone to each speaker individually (you will see on LCD which speaker is being tested at each moment). If you will hear a sound from the center now, there is no issue and center is working fine, just your source didn't contain any sound for the center.
If it doesn't work, then either you have faulty cable, faulty speaker or faulty center output of the receiver. - Try connecting the center speaker to different output of receiver (this will test if speaker is OK). - Try connecting working LEFT speaker to left output with CENTER cable (this will test if cable is OK). - Try connecting working LEFT speaker with working cable to the CENTER output (this will test the output of receiver if OK - but use the Test Tone from Setup).
You really can't add too much since the set's amplifier was designed to work with the internal speakers. What you'd be better off doing is buying a stereo receiver (or a home-theater system) and a couple of sets of speakers. Feed the audio output from the TV (on the rear or side, wherever they are on your set) to one of the receiver's inputs and you're off and running. You'll get more flexibility with a setup like this as well. If you don't want to watch TV you could still use the system for radio or CD playing as well.
Assuming the TV is up and working on its own, here's the simplest approach:
Find the the Audio Out from the TV - either an optical connection or a dual RCA Cable (probably came with the TV) and connect that to an Input on the home theatre receiver. You'll need the right cable depending on whether RCA or Optical. That gets you Surround Sound into the Receiver.
Then, connect a cable from each speaker to the marked terminals on the back of the receiver -- Front L/R, Rear L/R, Center, Subwoofer, etc.
Check out your speaker connections by trying a radio station - should play through the front speakers OK. Then switch to the input you connected the TV into. Once you get the TV Audio playing through the receiver, you can go to your TV setup screen and turn off the internal speakers on the TV.
Hope this is enough to get you going.
This reciever does not decode the audio through HDMI, the HDMI ports are simply a pass-through. To get audio you need to connect an optical audio cable from the PS3 to the reciever also. I figured this out after 2 hours of trying to get audio from the HDMI cable. Here is a link that shows the different audio formats supported through HDMI by the different Denon models. It looks like the AVR-788 is the lowest model that supports audio through HDMI. Hope that helps.