Congratulations on the new Grand Son Ray!!! What a wonderful gift to receive for the new year!
Spiff, I seem to remember two settings that need to be set to Bitstream. They might even be in different sections. I'm off to grab a coffee with some folks but when I return, I'll double check the online manual.
Question for you. Is your TV hooked directly to the PS3 via HDMI but the PS3 is optical to receiver? If so, the reverse signal from the TV telling it that the TV is stereo can trick the PS3 to outputting stereo no matter what. However, this can be overcome with the proper settings in the PS3. NEEEEED coffee first though.
