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Prof Hat - I have similar question.

Just obtained a PS3 and picking up my Onkyo 875 tomorrow (couldn't justify the extra £300 for the 905 ).

I take it that as long as I connect the Amp and PS3 together via HDMI (and ensure the audio is output via PCM and not bitstream), the Onkyo will do the business in terms of HD audio?

PJ PRO - Very many thanks; I'll have a play tomorrow!!!!

All this confuses me.

I have just seen on another forum that although an optical lead cannot handle HD audio in 7.1 it can cope with 5.1 format.

Is this correct ?

Is there anyway of telling if you are receiving HD audio?

What it can do is extract the core mixes from these formats and send them across the digial optical cable - so you're still getting a 5.1 signal, but not the original lossless format stored on the Blu-Ray but a downgraded version of it.