I have a closely related problem with the Dolby True HD output from BlueRay. In this instance I am not using a PS3, but one of these:
http://whathifi.com/Review/Sony-BDP-S350/
Andrew, you have given good answers so far. Please can you try and help me too?
Call me old school, but I have my BR player hooked up to a good old fashioned Stereo HiFi: Mission Cyrus 1 amp, and some speakers you will never have heard of. That means I am using the analogue stereo outputs, but I'd take good HiFi stereo over mediocre surround any day of the week.
I appreciate that the BlueRay player has to 'down mix' the 8 channel True HD sound into Stereo and that will result in some loss of quality. What is bothering me is that it is also downgrading the sample rate from 196Khz to 48Khz. I feel that I am needlessly losing out on some of the finer detail and very deep bass. Certainly when I use vinyl there is a noticeable improvement over the range on regular 44.1Khz CDs.
Do you know if this is just Sony cutting corners on the DACs in my player, or if all BlueRay players do this?
If so, do you know any way around this to get the 196Khz digital in the HDMI converted directly to analogue for my Cyrus?
Sorry, I know that is a bit obscure but Mr Google couldn't help me and I think other people might be in the same boat as me.
Thanks!