The Setup: HDMI to TV, and Optical directly connected from PS3 to Logitech center console (receiver). PS3 settings were set for Video out -> HDMI and Audio out -> Optical.
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After testing the many possibilities of this audio problem, I almost gave up. Suddenly, when I went to turn off my Logitech center console, I noticed that instead of it reading "Optical - No Data Found," I got some random assortment of words - something like "Otcl - Dtaa Ntt Fond."
I knew something wasn't right. As it turns out, the receiver was malfunctioning and therefore was unable to output any sounds whatsoever, aside from a few speaker crackles here and there.
I went on eBay to find a used working receiver and found a few going for $50+. Before I bid, I thought I might call Logitech Customer Service first.
The Call...
After waiting about ten minutes to get a CS rep from Logitech technical service, I told him my situation. He responded by asking me for any proof of purchase. Since I had bought this from eBay brand new from a regular vendor, and had later deleted my eBay account, I had absolutely no way of proving my purchase. I thought I was screwed.
I told him all that, and after a while of some back and forth bickering, he put me on hold to speak with his manager. Upon returning, he asked me to give him the product ID number on the back of the center console. After I gave it to him, he put me on hold again to look up the PID. He came back and said that my prodect was still under the 2-year warranty! Yay!
Thinking that they were going to send me back a new receiver, he tells me that Logitech will send me the Z-5500 unit in its entirety - speakers, subs, remote, and center console...everything! All I had to do was ship out the broken receiver.
Now I have a brand new extra set of speakers/subwoofer! Thanks, Logitech!