WHEN ON STANDBY WHEN TRY TO SWITCH ON BLUE LIGHT COMES ON BUT AFTER A FEW SECONDS FLASHES HAVE TO ATTEMPT MANY TIMES TO SWITCH ON ALSO SOMETIMES WHEN TRY TO TURN VOLUME UP OR CHANGE CHANNEL SWITCHES OFF TO BLUE FLASHING LIGHT. SOMETIMES GET CRACKLING SOUND AND SOUND EVENTUALLY FADES AWAY, HAVE TO TURN OFF AND ON TO RECOVER. WHAT CAN I DO TO RECTIFY PROBLEM

Yeah, replace the set since it appears to be trashed. But if you have a few bucks lying around you might want to try replacing the unit's power supply to see if that resolves the many issues you have.

These blinks [flashes] are fault indication (Error Codes). From the number of blinks occur at one time switch ON, you can get an idea about the faulty circuit stage inside it. This will make repair easy. These are called blinking codes. Make sure about the exact number of blinking of the standby/power LED, by switching On & OFF the set, for at least two times. Count it carefully. If you wish to get some details, check the site linked here. It has details about blinking codes, and fault locating procedure, to many popular brand TVs and other devices. Viewing it in "Mosaic" or "Magazine" will make surf easy.
http://electronicshelponline.blogspot.com/
Blinking codes details to many popular brand TVs are given. Surf the site with patience.

These blinks [flashes] are fault indication (Error Codes). From the number of blinks occur at one time switch ON, you can get an idea about the faulty circuit stage inside it. This will make repair easy. These are called blinking codes. Make sure about the exact number of blinking of the standby/power led, by switching On & OFF the set, for at least two times. Count it carefully. If you wish to get some details, check the site linked here. It has details about blinking codes, and fault locating procedure, to many popular brand TVs and other devices. Viewing it in "Mosaic" will make surf easy.
http://electronicshelponline.blogspot.com/
Blinking codes details to many popular brand TVs are given. Surf the site with patience.
Unlike other brand TVs, reading the blinking codes to Philips is different. Check the linked site by type in 'Philips' at its search box, and press Enter.

How many times this standby/power light blinks at one time switch ON? Count it carefully. These blinks are fault indication, and known as blinking codes. From the number of blinks occur at one time switch ON; you can get an idea about the faulty circuit stage inside the TV. This will make repair easy. For more information, check the link http://electronicshelponline.blogspot.com/. If the blinks continues, and non-stop, the fault should be with its main system control IC, and with the memory IC.

Continuous blinks of standby light indicates a fault in the IIC data bus. The main board is likely to be faulty. If you wish to know more Check this link.

Register and download the manual for free at retrevo.com

http://www.retrevo.com/support/Pioneer-VSX-815-K-Receivers-manual/id/385dj989/t/2/

"enter and advanced surround keys"? I don't see that documented as a special function in the manual.

BTW: other than the Flashing light, is there a malfunction?

Page 72 describes how it REALLY resets...

Resetting the main unit

Use this procedure to reset all the receiver's settings to the factory default. Use the front

panel controls to do this.

1 Switch the receiver into standby.

2 While holding down the TONE button, press and hold the STANDBY/ON button for about three seconds.

3 When you see RESET? appear in the display, press ENTER .

OK? shows in the display.

4 Press SYSTEM SETUP to confirm.

OK appears in the display to indicate that the receiver has been reset to the factory default
settings.

hello coopa mark, usully it indicates on a powwer suplly problem.
some times its a bad capacitors

Had the same problem. It all looked OK and it found the Avantalk, but it would not 'pair' and kept failing. I decided the problem was probably with the Avantalk unit and wondered if I had paired it with too many other phones so decided to do a 'reset' on it. This is achieved with the Avantalk turned 'on-standby', with the two blue flashes every few seconds. Press and hold the up and down volume buttons for more than 5 seconds, at which point the red and blue lights will flash on and off 5 times very quickly. The unit should then return to its 'on-standby' state again. Switch it off (larger MFB phone button), then on again and then set it into pairing mode (immediately after the Avantalk has come on, press and hold the MFB button again until the red and blue lights are flashing), then go through the searching blue-tooth device and so on again with you phone. It should all work now.
Cheers... Rob.

get a new TV :)