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The Yamaha RX-V663, is nice....... It has about the same features as the 605, and in the same price range. I haven't heard much about this one yet. See it here: RX-V663 The Yamaha or Onkyo should work good...................... :)

No...............optical cable will only give you regular DD and DTS. The only way to get the HD audio formats to play, is using HDMI of a receiver that processes the new formats, or using the 5.1/7.1 analog inputs of the receiver. Since the ps3 doesn't have the 5.1/7.1 analog outputs, and your...

I would try for the refund, personally. If I had a high def tv, and the ps3 (Blu ray player), I would definitely want to hear the lossless HD audio soundtracks of the BD movies. That isn't possible with what you have.

I'd get the Onkyo 605, personally. It can handle the audio portion of the HDMI connections. The 605 has two HDMI inputs. The 705 has three. Check at Amazon.com for good prices on these receivers. These can handle the HD audio from Blu ray movies, played on the ps3. It's mainly for ease of...