Sorry if i'm beating a dead horse here. Been doing a lot of research regarding the bitstream vs pcm setting and I can't figure out which settings I should have it on.

I have my ps3 hooked up to my receiver (Denon 587) via optical.

Now, I understand if I have it on bitstream, the receiver will do the decoding correct?

If I have it set on PCM, it'll only send uncompressed in 2 channel.

Note, I only have 2 speakers...should I set it to bitstream to get dolby digital and get "fake" 5.1 sound (does this even matter with only 2 speakers) or would this sound better in 2 channel pcm? I'm a bit confused. Please feel free to correct me if this sounds wrong.

Thanks.

anyone? :)

If you are only using optical and 2 speakers, I would set it to PCM.

+1 you will only get fake surround sound if the receiver does some kind of simulated mode, 2 speaker PCM is the way to go.