I've read in two different places that the Playstation 3 game console is and is not compatible with Dolby TrueHD, DTS-HD, and uncompressed PCM audio. Which one is true?

It can decode TrueHD and PCM. It cannot decode DTS-HD or DTS-HD MA. DTS HD-MA is rumored for a future firmware update however.

For any of those format's, you'll need an HDMI connection to your receiver. The PS3 does not have 5.1 analog outputs.

Yeah, optical audio connection will output those formats as 1.5 Mbps DTS. HDMI is needed for lossless.

It'll output the PCM signal in stereo through optical, which you can run through DPL II (or stereo, I suppose).

If you need to output in HDMI to your audio reciever. How would you output the video to your TV? Since it's only got 1 HDMI slot (the PS3). I use digital audio and it sounds pretty darn crisp. I'd be interested to hear how much better it could sound.

We'll call that a last resort.

The receiver will have an HDMI in and an HDMI out slot. You plug in the HDMI from the PS3 out to the receiver in. Then you plug in another HDMI cable from the receiver out to the TV in. The receiver will pull the sound from the data stream and send the image through to the television.

Thanks for that. Yeah mine's an old reciever but it gets the job done. Gotta update when I have the money. The old reciever cost me $350.

i have an old receiver which have optical inputs and supports DD and DTS. it does not have HDMI inputs. Will i be able to connect the PS3 audio outputs to my receiver? would i have any incompatablitlity issues playing blue ray movies?

will i still get 5.1 channels of audio? i don't care about 'lossless'

I'm assuming the PS3 has optical outputs, correct?

No problems. Yes the PS3 has optical output. The only thing is that you will not be able to take advantage of the new audio formats. But it will still sound good.

Well, Ive been through it all. I've got my PS3 running 300 and my receiver is an Onkyo sr604 which supports 5.1 PCM. Thing is, I've got no rear speaker sound, EXCEPT on "english 6" of the BD which is the commentary. "English 1,2,3" sound great, but no rear surround sound. I've been through every config I could on the PS3, reciever and BD menu, still nothing. Could this be an issue with the BD itself? - Also Im running HDMI so it isnt an optical issue.

For about that price you can get a Sony STR-DG910 http://www.amazon.com/gp/product/B00...208789-8592045 which has 3 HDMI in. Of course there's a debate going on in a thread in the Hardware forum about the quality of Sony receivers, but HDMI in can be had for $300-$400 these days...