March 2014: As others have said, yes there are unresolved major HDMI issues....see the sony forum
18 March 2014
Summary: While its features and inputs combined with airplay and ios remote are fun perks, its major shortcoming is that there are definite HDMI issues. See the Sony forum; many users are having the same problem. Sony website fanboy moderators sweep the complaints under the rug and fail to acknowledge any issues; they routinely recommend reversing the HDMI cables, purchasing new *sony brand* cables, running the cables without any neighboring cables (ha), and doing firmware...
Summary: 1st of all, I always read the negative reviews before I read the positive. If after reading the positive review and I still like the product I will buy it. In this case, I knew other 1040 users had an issue with the hdmi not handshaking causing the output to flash off and on to snow, blank scrn, to picture, back to snow... over and over. But always being the optimist, decided to give Sony a try. Well my unit did great until 8 days of use and started this issue.
Summary: After reading the reviews I was really pumped about getting my new STR-DN1040 receiver. It appears you will get a great product or a lemon. I got the lemon. After 2 days it started loosing the picture on the TV. "Signal Lost". Then it would come back and then go out aprox every 3 seconds. It would continually do this until I would unplug and plug it back in. Embarrassing when you hosting the game. Then it would be good for the rest of the day.
Pros: Tons of features and great sound.
Cons: Serious HDMI Handshake issues with no fix insight
Summary: After reading the reviews I was really pumped about getting my new STR-DN1040 receiver. It appears you will get a great product or a lemon. I got the lemon. After 2 days it started loosing the picture on the TV. "Signal Lost". Then the it would come back and then go out aprox every 3 seconds. It would continually do this until I would unplug and plug it back in. Then it would be good for the rest of the day.
Summary: If I could have rated this a ZERO, I would have. I also purchased this receiver direct from SONY expecting great things. I researched and thought the negative reviews were most likely people that either didn't know how to use it, or received a LEMON of a unit. Anxiously looked forward to setting the unit up and listening / watching. Got it set-up and used it for about 6 hours. Turned the unit off and went to dinner.
Summary: Straight out of the box, I was unable to get a picture through the reveiver. After an extended time with a Sony rep, it was determined that the unit was defective.Rather then just replacing the item, Sony wants you to mail it back to thier service dept ( granted on thier dime) and wait 10-14 days to get it back. Not Amazon, they took it back and refunded the cost of the unit. Best service ever is Amazon and even better is Prime.
Summary: I should have paid more attention to the reviews. This receiver worked perfectly for about a week, then it developed HDMI issues just as others have described. At first I would get picture but no sound, then sound but no picture. I got it to work again for a few minutes by unplugging the unit and turning it back on, but the picture went after a couple of minutes. I was happy with the unit until it developed these issues.
Summary: Do not purchase this model. Problem with this model and Firmware for HDMI. You can only update the Firmware if you can get to the on screen GUI. If the older firmware doesn't allow your HDMI to work with your TV, you are up the creek without a paddle. Sony Tech Support doesn't help. Buy a different model or different brand.
Wish I hadn't bought this Sony Receiver... plus update
waiting... waiting, Amazon
11 November 2013
Summary: Bought the Receiver through Amazon in July, it suddenly died in October. HDMI problems, like other reviewers. One day all video output, from Blu-Ray disc, cable box, etc. just stopped working. Went on Sony site, found many complaints of the same thing. Now I've shipped it back to Texas for repair, it's cost me $78 to ship insured from my home in Hawaii. Not to mention the pain of uncabling, boxing, hauling the unit to the UPS store, and now waiting for it's return.