Re: connection question...
Well there are always better options!
The fiber optic has DTS & Dolby digital, that's fine for TV shows & DVD's but if you start playing Blu-Ray movies in your PS3 (And if your not what are you waiting for!?) you will not be getting the lossless audio they can provide.
There are some inexpensive receivers with HDMI inputs now.
I run HDMI in to my receiver for everything & have a single HDMI feeding video to my TV.
Just my opinion but the Lossless audio through HDMI sounds so fantastic through my Denon receiver & I'm advising all my friends to go the same route.