OK, got lazy and cut and pasted from a FAQ.
<snip>
Case 4: PS3 connected to a recent model AVR, with HDMI inputs, and the AVR HDMI output is connected to your recent vintage HDTV.
In this case you can simply use an HDMI cable to connect from the HDMI output on your PS3 to an available HDMI input on your AVR. Then use another HDMI cable to connected the HDMI output of your AVR to an available HDMI input on your HDTV. Your AVR will receive the digital audio data (decoded and provided in multi-channel LPCM format) from the PS3, will process it then output the audio to the connected speakers. The AVR will also pass the digital video data on to your HDTV for display.
Suggested PS3 Audio and Video additional Settings for Case 4 (starting from XMB and Settings drop down menu):
* XMB >>> Settings >>> Display Settings >>> Video Output Settings = HDMI >>> Setting Method=AUTOMATIC
* XMB >>> Settings >>> Video Settings* >>> BD/DVD Audio Output Format (HDMI)=LINEAR PCM
* XMB >>> Settings >>> Sound Settings >>> Audio Output Settings >>> HDMI >>> Method for Setting the Output Format=AUTOMATIC
* "Video Settings" was called "BD/DVD Settings" with PS3 firmware prior to version 2.50
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