Okay, once again, after reading many threads about this issue over at another place, Once Again this appears to be a Manufacturing Issue with Onkyo. It is not a handshake issue at all!
I will be in contact with Onkyo over the next couple of days to see if this will be covered by any kind of recall "Know Issue" warranty. If so, our plan will be to send it out for repair and then probably use it in the Den.
Barb says "Let's just get a new one for the Home Theater".
So, I run separate Power Amps, Do I go Pre/Pro at the added expense or once again an AVR with Pre-Outs and save a boat load of money??