In order to use this feature you have to connect two signals to your set:

One of the signals must be from an HDMI device (DVD-R, Cable Box, etc.) and be connected to either the HDMI1 or HDMI2 jack
The other signal can be either analog or digital and can be connected to any available (Non-HDMI) jack (See hookup guide for details)

To set your preferences for PIP:
1) Press the MENU button on the remote
2) Push down the cursor ring to select SETUP from the menu
3) Push the cursor ring right to select PREFERENCES
4) Push the cursor ring right to select PICTURE/SOUND PREFERENCES

This menu allows you to select the preferred format PIP or Dual screen:

1) Select PIP format

2) Press the cursor right to select PIP or Dual screen with the cursor up/down

If you select PIP, the TV shows a full screen of video with a pip window of video on top of it. Audio will be from the main screen only.
If you select Dual screen, the TV splits the screen into two equally sized screens. Audio will come from what is showing on the left side of the screen.

3) Exit the menu

To activate PIP push the PIP button on the remote. Use the cursor left/right to highlight the PIP window or the left/right screen in Dual screen.

Press the -CH/PAGE+ button to change the broadcast channel or the AV+ button to change the HDMI source in the highlighted screen.

To define the position of the PIP screen:
1) Press the cursor right to highlight the PIP screen
2) Press the red color button on the remote control to select Position
3) Use the cursor keys to define the position of the PIP screen