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Step 1 -
Do it all over again. When it says "HDMI Device detected" at first, choose to output video and auido using HDMI.

Step 2-
Then it asks whether to switch to "optimal settings" choose no.

Step 3-
Go to system in the XMB and choose display settings.
For the type of connection choose HDMI.
In the next screen, you are given the option of Manual or automatic.Choose Manual.
Select the resolutions it can display. If 1080p cannot be done choose something else. Is it 720p????
In the next screen choose finish.

Good luck