Sounds like a "handshake" issue. The problem sometimes occurs (and will go away) depending on the order in which devices are turned on. After turning on the Yammy, have you tried recycling the PS3 off and on? Does that do anything? Also, make sure that you aren't trying to send a 1080p signal through component cables (downscaling using the Yammy). Not sure if downscaling to HDMI will cause problems.