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The problem with the PS3 (non-slim) is that it cannot bitstream HD audio content. It has to be decoded internally and sent out using LPCM to the receiver.

HDMI

So I just got a new receiver (the Pioneer VSX-1019) and I was immediately stunned by the audio quality when watching 5.1 HD movies on cable. However, when I got to playing a blu-ray through my PS3, the sound is decent enough, but not what I was expecting and not to the same quality as what I...