Yes, it was working fine and suddenly stopped. Symptoms are exactly the same described here, how the display behaves and the remote buttons.
My Zone2 is powered by the Yamaha, and I did not change the settings (double checked them before I came to the forum), and I didn't add new sources. Only thing different that comes to my mind is the firmware update to 1.60 that happened in the meantime.
Not even FM radio is playing. My Zone2 has 4 speakers connected to it - not likely that all 4 would stop working at the same time (I'm ruling out a problem with the speakers).
thanks in advance for the help!