I just emailed HK and got a response in less than 1 hr. This is the second time I have emailed and recieved a very fast response.
It turns out like you guys were right on track. Here is the official response
"Thank you for the inquiry. Your AVR 445 is functioning as it was designed. The video transcoding that works for the analog inputs gives priority to incoming component video signals.

What this means is that if there is a signal coming from your DVD player into the component input on the AVR, then the AVR will send out the component video signal to your TV instead of the OSD menu.

A way around this is to hook up either an s-video or composite video cable from the receiver's MONITOR OUT jack to your TV. You will need to bounce back and forth between inputs on the TV, but it would eliminate the problem you're having where the DVD player has to be powered off in order to see the AVR's OSD."

So I will change my connections and use a composite line for the OSD.

Thanks again for your brainpower.
Mark


AV equipment (in case you care)Panasonic TH-50PE700U,PS3 80GB,HK 445,Axiom M60,QS4,VP100,Hsu VTF2.3