Hi Homedad, thanks for response.

I should have said that the PS3 won't decode ALL of the HD Audio codecs...that is actually what I've heard (and might be closer to true?).

To paraphrase, to successfully listen to the lossless sound recordings, I would need to have a receiver that supported PCM (thanks, I just learned very briefly what pulse code modulation is). The Denon 3805 seems to, as specs quote PCM-1804, though more googling is required to understand. Anyway, once I get a receiver that supports PCM, I would need to make sure I have a cable that will transmit the large digital signal. You've said optical won't, so I suppose that is one big reason I would run an HDMI cable to the receiver, not necessarily to benefit video, but b/c it will carry all the audio info.

Let me know if I misinterpreted. If not, thanks very much!