Axiom Home Page Forums General Discussion Home Theater Audio Format Question

The 7.1 part is incorrect. The PS3 will decode the 7.1 formats and send them as 8 channels of LPCM to the AVR if it advertises support (mine does).

There really is no reason at all to send undecoded audio to the AVR. There's even a plus to doing it in the player, in that it can mix secondary steams (like menu beeps or commentaries) on the fly. Without the player doing the decoding you'd not hear these things at all.