Can the HDMI out on the PS3 send 2 channel stereo to an HDTV? I am getting one today but until I buy a switchbox, I will have to plug it up to my TV and have video and audio going to my HDTV.

Yes it can

Thank you sir.

If I may, can someone tell me the exact setting on the PS3, for 2 channel stereo audio through HDMI. What is it called?

Try looking here --> http://manuals.playstation.net/document/en/ps3/current/settings/audiooutput.html I think that should answer your question.

In a nutshell, you select HDMI and everything else is magic.. :)

So its pretty easy? I have it here in front of me, but trying to get some idea of what to do before I hook it up. What about when I play movies, will the audio come through the TV ok as well?

Yes, HDMI makes everything really simple (at least that's the idea) so it's a 2 step process.

1) Connect PS3 -> TV with any HDMI cable

2) Select HDMI in the Video and Audio settings on the PS3

Everything ... All video, audio, Games, Movies, Music, DVD's, BD's, etc.. will come out on the TV

Thanks buddy, gonna get it ready now.