Thanks for the responses! Everything is hooked up via HDMI (PS3 to 807 to TV).

I kind of figured the ipod dock thing could be the levels of indivdual recordings etc and how they got imported into iTunes so that's why I tried the cd route. I will play around some more. In the PS3 menu I see there are settings for music options like whether to play cd tracks as mp3, etc so perhaps I need to tweak these things some and keep messing. Also I will play around with some different CD's.

Of course with a 7 week old baby finding times when I can crank it anyways may make the whole thing moot LOL eek