In actuality, I was the victim of a phenomenon known as a ground loop. First, I should mention that I am using the RCA connection for video as opposed to the HDMI cable (no HDTV), so if you have this problem with HDMI it might be something else entirely. In my configuration a ground loop was absolutely the issue. Often enough, electronic equipment is connected using only a two-pronged plug, not the three-pronged variety. Electrical devices connected to power in this fashion are known as a floating ground. This is normally not an issue, but in a system where devices are connected via cables and not all the devices in the system are connected as floating grounds, this can become a problem. Why? Well I'm not a certified electrician and you can certainly read a bit more about it on Wikipedia if you like, but it comes down to a difference in ground potential between the connected devices.
Electricity, in a nutshell, works on the principal of two points in a circuit having a difference in potential. You can think of it like water flowing from a point on top of a mountain down to the sea. The effect of gravity in concert with the difference in elevation is essentially the same principal as that of electrical potential. The water wants to flow from the point of high elevation (high potential) to the point of low elevation (low potential). Without a difference in gravity potential there is no reason for the water to move from point A to point B. And likewise, without a difference in electrical potential there is no reason for electrons to create electricity by moving through a conductor. Not having a common ground within a system of connected electrical devices causes this difference in potential and voila! instant video problems because we end up having a flow of electrical current where there should not be a current.
I was honestly surprised to see this happen, and it took a good deal of grief before I realized what it was. In the case of the PS3, Sony decided to use a three-pronged (grounded) plug similar to what is used for most computers. I'm not sure what the reason behind that decision was, but I really don't see a whole lot of danger there because the case is enclosed by plastic and would buffer you from shock in the event of a short anyhow. That aside, this is the first part of how we get a ground loop. The other part comes from your television, but not your television's power connection. Rather, it comes from your cable line connection! Yes, your cable line into the back of the television, if not properly isolated, can cause a ground loop in concert with a fully grounded piece of equipment connected to your television.
In my case, having the PS3 plugged into a grounded outlet, that is to say the PS3 is not a floating ground, along with having it connected via RCA cables to a television connected to a non-isolated cable line, caused a ground loop. Since I'm using online media exclusively now, all I had to do was unplug the cable line and I was all set. If you have cable and need the connection, you could: verify your cable box is has an isolating transformer to shield from ground loops, unground your PS3, or add a special filter to your cable line to protect it from ground loops in the way a cable box would normally do.
~Mike
