Originally Posted by lowenbotten
The HDMI audio setting in the PS3 is only to tell it what to do with DD and DTS tracks. If you set it to bitstream, it will output DD & DTS to a receiver. It will still decode the advanced audio in the PS3. I know this because that's how I have my PS3 set up. It's also explained online by Sony in their online PS3 manual.
Doesn't work that way anymore for TrueHD!
Since 1.8 or maybe 1.9, you MUST have HDMI set to PCM, or you won't get TrueHD decoding. It will pass the hidden lossy DD track.
Doesn't matter how you have it set for PCM tracks (no decoding required), but unless you have it set to PCM for TrueHD you are going to get lossy DD.
Unless they changed it back with 2.0 or 2.01 this is true. I haven't checked, and no one's claimed it so far.
It's very easy to tell. When you hit the display, the PS3 will tell you it's multichannel DD and 640 kbps if that's the rate if it's just playing the DD track, whereas if it's decoding the TrueHD track it will say "TrueHD" and you'll see the variable bitrate ranging in the Mbps.
Let me know if they really changed it back, since that's preferable to me (and makes sense if they're never going to allow bitstreaming advanced codecs).
I could probably leave mine at PCM now that most titles have a PCM or TrueHD track, but I still want my receiver to handle legacy codecs. A few early titles of mine have just DD or DTS, and obviously until we get DTS HD decoding those (Fox and Lionsgate titles) are just DTS tracks I'd rather let my receiver play with, especially for EX/ES flag purposes (though since I force it to 7.1 with PLIIx, this may be a moot issue).
Still it would probably be easier for me to remember to switch it to bitstream for those few titles, rather than the other way around. I already ended up watching one rental title (TMNT) in DD instead of TrueHD not realizing it had a TrueHD track, thanks to WB not having setup menus.
At least since that unfortunate firmware revision making the PS3 handle TrueHD in such a manner they also let you switch it on the fly with the triangle menu (A/V settings).