Well I have tried the settings on both TV sets my Samsung lcd 24" and my LG 55" OLED with the same results. If I set it on 1080 i/p you get a black screen showing only menus. There must be an issue with this because so many people have been posting about it. You must be one of the few that it is not effecting with your brand of TV.
I have also noticed the transcoder is not working when selecting AAC to AC3 watching Freeview HD. When I play it through my amp using the optical output of the receiver you get no sound.