I dont want to start a war or anything, but sitting at work we were discussing the following question:

If someone downloads movies in x264, h264 MKV, or M2TS files, are they able to have the new HD lossless audio or is the audio just ripped to standard DD or DTS

note - files would be streamed from computer through PS3 Media Srv, to "new slim ps3" connected to new AVR (which supports the HD audio) via HDMI

They can but most scene rips use regular DD/DTS. XMB can't play DTH/DTS so have to transcode to PCM (PMS only transcodes FLAC so you have to do it manually) or burn to AVCHD.

They can but most scene rips use regular DD/DTS. XMB can't play DTH/DTS so have to transcode to PCM (PMS only transcodes FLAC so you have to do it manually) or burn to AVCHD.

i agree! Ps3 no dts, or masters or true hd to go! There is a way to mount these on fat32 drive external without burning on discs and watch on ps3 in orig soundtrack. I have not tried menus though!

Most burn the core dts file and go 720p. If you want the 1080 and hd audio, netflix is your friend. DTS and 720p is still pretty good for a rip. PS3 media server can only transcode and serve so much data over wifi anyway. I've had the best result repackaging with mkv2vob then downloading and playing from the ps3.