Thank you everyone for your input, i have not reset it yet, it's only 4 days old. So warranty is still on and i can change it for a new one.
On a completely separate note, I just bought dolby atmos enabled speakers, reason being is because my ceiling is not fit for ceiling speakers.
I have noticed a echo effect when watching normal tv with all channels on ( not tried movies yet ) music is not to bad, the echo can be heard wathing youtube etc and tv shows, also if i hit pause the sound echos out, seems as if when i hit pause all the speakers stop straight away but there is a lag of like 1-2 secs on the speakers , there is a setting which is called AccuReflex on my receiver .
This is supposed to "optimize" the speaker however when i turn this off the echo goes off but then im wondering if this setting is off is the speaker still working as it should be or is it just being used as a normal speaker?
You are on your own with that Atmos problem. I would say however, that I think Atmos enabled speakers are a really dumb, bad idea. Good speakers best gimmicky speakers any day.
If you can return those speakers and just get the best front three speakers and sub you can afford, you will be far further ahead. You can add surrounds later.
As to the receiver if it is new, I bet there is a problem. I would personally return it, and me view is to exchange it for something other than Onkyo.
The receiver business is very fragile at the moment. Pioneer took a minority stake in Okyo about a years or so ago. They are second behind the Gibson guitar people. I think the finance is shaky and suspect it contributes to know quality issues.
Bain Capitol failed to refinance Denon/Marantz 21 months ago, due to large losses. They managed to get temporary revolving credit form Sienna corp under somewhat onerous terms. So this has two years to run. I suspect if they don't turn a profit by then to all intense and purposes that will be the end. The names will likely be bought by a junk purveyor.
In my view Yamaha is the only consumer grade receiver manufacturer with access to sound finance right now.
It seems from reports I have read Denon/Marantz quality may well be slipping. That is the usual outcome of these situations.
Given the huge popularity of sound bars I don't see this situation improving, in fact the reverse.
So it certainly looks as if Yamaha may be the last man standing.
If there is to be a remedy for this situation, I think receiver prices have to increase substantially. The need to increase to the point where a profit can be made from a limited committed market.
I have watched this industry for years, and I think the mid to higher end market is threatened as never before.
As I have said before it is not far fetched to suggest the DIY receiver route may be the only way to getting the job done at reasonable cost. It is now possible to make am HTPC that is a very respectable pre/pro. Then add amps which are now reasonable priced and you are home free.