It could be my TV, but the PS3 is the main thing I'm noticing it on.

I had a static image on the screen for less than 10 minutes, and boom - burn-in on my LCD. Now, I know that it's not permanent, and that it can easily be removed by turning the TV off for a bit or the white screen method, but still...is this a known issue with the PS3? Is it my TV? Can I do something about it?

That's really...weird. LCDs are not susceptible to burn-in, and I don't see how the PS3 would have anything to do with it. For what it's worth, I also have a PS3/LCD set up, and haven't had any problems.

PS3 has nothing to do it it... And LCDs don't normally get burn in... How do you have the PS3 hooked up to the TV? Can you take a photo for us?

Ditto.

Digital camera's currently on loan, but it's hooked up via HDMI.

I've had this happen with the 360 before also (also HDMI), but it takes a lot longer - 45 minutes and up of just sitting there. My HD-DVD player (HDMI as well) and DirecTV (again, HDMI) never do it.

If I turn the TV off for an hour or so, the burn-in goes away.

From some website:

The Truth About LCD and Burn In
It is a fact that LCD displays are immune to phosphor wear, simply because LCD televisions do not use phosphor to create a television image. Otherwise, it would be like saying an electric car can run out of gas.

However, LCD displays have certain characteristics that do not make them completely immune to static images. On LCD displays it's kindly referred to as "video memory." LCD panels use a complicated process of organizing liquid crystal molecules into a twisted or untwisted state, which allows polarized light to pass through the liquid crystal substrate. Over time, it is possible the liquid crystals can "get used to" the state of twist they are in, causing a static image, similar to phosphor burn-in, appear on the screen.

Some say that simply turning off the display for 24-48 hours eliminates the effect, while others have claimed the effect is permanent in extreme cases. Nonetheless, home users of LCD televisions have little to fear.

Is your contrast cranked?

On the TV? Just checked, and it was at 76/100. Took it down to 50. Does that make a difference?

Yeah. Calibrate your TV out of box as the settings are usually way too high for contrast. It's the reason why you also with LCD's are suggested to use a little dim backlighting so you don't burn the eyes out of your head in complete darkness.

Awesome. Thanks for the tip!

So it should be alright also to have a wallpaper on my PS3 without fear of this happening?