I tried some more experiments today. Still no progress. I connected my LG BD390 to my receiver with a different HDMI cable. I put in the Paul McCartney and Wings "Band on the Run," 96 kHZ/24 bit FLAC files on a DVD. My Yamaha said the signal was 96 kHZ. The Oppo Onscreen display recognized 96 kHZ/24 bit, however once again my Yamaha said the Oppo was only sending a 48kHZ signal. The LG BD390 and the Yamaha said the signal from the Pixies Minotaur Blu Ray audio was 192 kHZ. The Oppo onscreen verified the signal as 192 kHZ but the Yamaha said the signal is only 48 kHZ.
Lastly, I did a firmware update to the Yamaha. A firmware was released 12/25/2012. The receiver was successfully updated. Still the same problem. I used the same HDMI cable for both players.
The LG does NOT support SACD, DVD-Audio, or FLAC files on a USB drive. Yet the LG can handle the higher frequencies.
To say I'm stumped is an understatement. I sent an email to Oppo. They should also get my USB drive and my DVD within the next couple of days. I hope I can get an answer.
Botch, if you are lurking, what player settings are you using with your Yamaha, and have you had the same problem?