Thanks all - quick replies below:
dbphd: Thanks - not sure an Oppo will really help me out here.
zydo: Good ideas for sure, and I appreciate the offer. The 360 is under warranty, I just dont want to send it in (this is my second one, and it isn't worth it to me to have to be without, not to mention get it back and have it have the same issue). Also, I bought it to do the HDMI switching, so its not fulfilling one of its primary jobs. My previous Marantz did this perfectly, and was way cheaper. What are your thoughts on putting a processor in front of it, and just using the 360 for amplification?
stringreen: yeah i have all audioquest pearl cables and interconnects - so should be good to go on the HDMI front.