Thank You for the help. I will plan to connect the PS3 directly to the HT-CT350 using HDMI like you said. Disable the HDMI audio for the Direct TV HR23-700 and use the optical connection to the HT-CT350 instead. The Computer is connected with a DVI to HDMI cable so I will use the optical connection to the HT-CT350 as well. If this will work then I will have to purchase the Sony Sound-Bar
The LN52B750 manual reads
DIGITAL AUDIO OUT (OPTICAL)
Connects to a Digital Audio component such as a Home theater receiver.
When a Digital Audio System is connected to the DIGITAL AUDIO OUT (OPTICAL) jack: Decrease the volume of the TV
and adjust the volume level with the system’s volume control.
5.1CH audio is possible when the TV is connected to an external device supporting 5.1CH.
When the Home Theater receiver is set to On, you can hear sound output from the TV’s Optical jack. When the TV is
displaying a DTV(air) signal, the TV will send out 5.1 channel sound to the Home theater receiver. When the source is a
digital component such as a DVD / Blu-ray player / Cable Box / Satellite receiver (Set-Top Box) and is connected to the
TV via HDMI, only 2 channel sound will be heard from the Home Theater receiver. If you want to hear 5.1 channel audio,
connect the digital audio out jack on DVD / Blu-ray player / Cable Box / Satellite receiver (Set-Top Box) directly to an
Amplifier or Home Theater, not the TV.