Question for any of you that have a PS3: How do you have your PS3 connected to your receiver (assuming it's not just connected to the TV)? I am using HDMI, but since you can also use optical cable, I was wondering if anyone uses that and if so, what for? Furthermore, what settings are then used in the PS3 menu for either connection? You can set both the HDMI and optical connections to LPCM or Bitstream. I haven't experimented yet and am looking for some advice.

My situation is as follows: I have the PS3 connected to my Denon 2808 with HDMI with LPCM, and the video is passed through to the TV but the audio is processed by the receiver. I've noticed that on the Denon front panel display, it says "multi-ch in" when I'm playing a CD or games, and I can't seem to change the audio to Dolby PLII on the Denon. This seems strange to me.
When playing movies, I do get the Dolby Digital display on the Denon. I don't have any blu-ray discs with the lossless audio formats to try yet to see what the display would be when they are played.
Anyway - if you have any 'best-practice' advice, I'm all ears.

thanks a bazillion!