Re: PS3's Audio Capabilities - Please Clarify
HDMI 1.2 is capable of transmitting SACD multi-channel audio in the form of decoded LPCM.
The PS3 has a sound board capable of Dolby TrueHD (and quite possibly DTS Master HD). However, it is only capable of passing the Dolby TrueHD audio stream. There is not enough bandwidth in Toslink or Digital Coaxial for the TrueHD format. It can only be passed through HDMI 1.3. Thus, you need an HDMI 1.3 receiver which is capable of decoding the new audio formats.
I HIGHLY recommend the Onkyo line of receivers. The 605 model would suit you well. The 805 model gets the biggest thumbs up from me: 3 HDMI 1.3 inputs, 7.1 audio (2 sets of outputs), more than enough a/v inputs, phono preamp, 2 zones, toslink, coaxial, sirius, xm, and so much more.