don't know about catch 22, more like pot luck.
I have a list of hdmi over the years, sony ps3, western digital media players, tablets, kindle, philips pvr, raspberry pi, samsung blu-ray, PC's, media centres, netbooks, stuff I've forgotten about, etc. etc. and all have worked flawlessy regards HDCP with my setup
The only hdmi device that hasn't is Humax and when it doesn't it's a nightmare!
Humax either apply HDCP too stringently or they're missing something that all the other manufacturers seem to get right.
Humax seem to have their fingers in a lot of pies around the world and it's clear that the UK market just isn't important enough to them anymore.
My guess is, factory resetting and choosing 1080i if possible on initial install will fix the OP's (original poster's) HDCP problem. If not there's sure to be a different work around