Exactly John, the PS3 was decoding or playing it and and sending it to the receiver via PCM.
The movie sounded terrific, but I was watching at fairly low volume levels, tommorrow I'll crank it up when no one is home to get a better idea of how it sounds through the six speakers and sub. One question I have is will my Denon 4806 play it as a true 7.1 by PCM via HDMI or is it limited to 6.1

A computer once beat me at chess, but it was no match for me at kick boxing.