PS3 to Receiver Audio Connection

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I have mine connected via optical. Does me just fine. sounds great connected to my pioneer receiver
 
Same as you.

I have been doing a lot of reading tonight on the two settings. Seems like for the time being, PCM is the way to go. I just need to remember to select the uncompressed track on the Blue Ray disk. It's just like when you told me a while back to select the True HD track on my HD movies. Both will always defaut to the DD track on start up.
 
I have my ps3 which I just got hooked up to my reciever via optical but setting to pcm via the xmb yields 2 chan whereas bitstream gets 5.1 but with a notice about some loss of sound?

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I've got my system hooked up via HDMI to my TV and optical to my reciever. Setting on the PS3 is PCM and I seem to be getting proper DD5.1 surround (unlike above)...weird.
 

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