The volume know is an encoder and they are known for failing in MANY receivers.
If you can handle a screwdriver and can UNPLUG the unit from the AC , Buy some De-oxit spray at Radio Shack open the case , look where the volume control is and spray Deoxit on and in the control. Rotate it a couple dozen times. See if that works. If not You'll need to have the encoder replaced. Theyre about $5.00-10.00
Ironic that this popped up today. I just worked on my dads Yamaha RX-V663 today. Have you tried to see if it works on the other speaker channels. Not sure how you have yours set up or how many speakers are attached, but my dads wouldn't work on channel A, I guess it burned up. I basically just moved the speakers over to the surround sound and channel B and everything worked as usual. Oh, and turned off channel A
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