bmxracr96 - I had the exacct same problem and I thought the system was jacked up. Those hot keys did not work for me so I had to follow the steps using the arrow keys to get it fixed. Also, I did connect a VGA Screen to my MD simultaneously connected to the A/V Receiver. I was able to get through the setup, but when I unpluggd the VGA monitor, I was back a square 1. So I hope this helps:
It's tedious but it works:
1. Plug your VGA Mon to the system.
2. reboot the system and write down each step you take for the AV setup: example: the first screen that comes up is all you do is press enter, next screen (if you want to use DVI - HDMI and 720p) press down arrow 1 tims, press right arrow 1 time and down 2 times and press enter, then wait 11 seconds and press right arrow 1 time and enter. This will get you past the initial screen while it's black/blank and then allow you to select the UI and you should be home from there.
If that does not work, on my core using a FXF Geforcce 8500 card, I had to attach a DVI to VGA adapter to get things configured and things seem to work fine from there.
Also,, you should hear two set's of beeps; 1) progressive up tone; 2) I think is progressive down tone (I hope I remembered that correctly). In any case, after the second tone wait about 10 - 15 seconds and you should start with the enter key as described above.
Not scientific but it worked for me. Now my only problem is that the system locks up about every hour or so.