Hey Charles, good to hear from you too.
David, to your question, no, the PS3 can only stream 5.1 AC3 [at least as far as I can figure out], so I convert the audio from whatever the original format is to AC-3. I honestly can't tell a difference, though I haven't done a ton of testing yet. At some point I might do a blind A/B test to see if I really can tell the difference, but for now I'm really just playing with it.
For Blu-Rays that I listen to often, it's nice to have them available at the click of a button without getting up to change disks (especially for music/concert Blu-Rays. The one other downside to streaming them is that the chapter markers do not remain in the streamed versions, so even though the PS3 can FF at 120x speeds, it's a little annoying compared to just dialing up the chapter you want.
Jason
