When pressing the source button once this menu appears
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When pressing source again the menu disappears.

Could you change it so that when you press source and this menu is shown that it goes one down and eventually when the menu is closed (by pressing ok or after some seconds) it switches to the selected source.

This way I can use the remote that comes with the settopbox. I can't use this remote control to go down on this menu.

Edit: (at least the Sony and the LG I tested works this way)