Re: PS3 Sounds compressed through Fiberoptic-out.
What do you mean by "compressed"? Do you maybe have the PS3's dynamic compression turned on?
The other thing is are you comparing SD DVD playback or are you comparing BDs to what you're used to on your old DVD player? If the latter, then which specific titles have you tried that sound bad?
Do you have the latest software update? I'm not sure if anything significant has changed for audio, but if you haven't done a software update, you really should.
How do you have things set up for audio output, besides the bitstream/LPCM setting? There is a separate audio setting (under the main list, not under BD/DVD, IIRC) for you to tell the PS3 what audio formats your receiver can handle -- and the PS3 will downmix/convert accordingly, if a format is not supported. Assuming your receiver can handle both DD and DTS, you should set those -- I forget, but both might be turned off by default -- so the PS3 doesn't downmix/convert to something like PCM 2.0.
_Man_