Coloring an image is a neat trick. Sounds like it might be a stuck bit in the AVR processing section.
Try swapping cables with the PS3 (leaving the other ends plugged in to the AVR). You might also try disabling video processing of the HR2x input.
Looking at some of the reviews, the receiver has had more than a few serious issues since it was released 18 months ago.
It appears that you need to try an AVR receiver firmware update and see if it fixes the problems. I'd hook myself up with a reliable home theater forum and see what the consensus is there. I used Google to search for "AVR-254 pink" and got a surprising number of hits. AVSForum has a thread for the product line that is filled with similar stories and links to the upgrade software.