I use the denon 3808 (which can do the decoding) but the ps3 won't allow that to occur. MY ps3 just decodes it and sends it via hdmi and it sounds great. The "dolby trueHD" light on my receiver doesn't light up since it is not doing the decoding (it just says mulit channel in), but when I hit the display button on the ps3 it says "dolby trueHD".

-David