I have HUGE news...
OMG! I do NOT know when the hell this happened, but there is an option WITHIN Blu-Ray playback on the PS3, where you can set the Bitstream (basically meaning the optical out) to Mix, instead of Direct. Direct basically means that there is no touching the audio signal whatsoever. I dunno what the hell Mix is and if it FOUND a Dolby Digital signal embedded in the Blu-Ray OR converted DTS to Dolby Digital, but YES! I can watch Blu-Rays in Dolby Digital!
How to get Dolby Digital signals from DTS only Blu-Rays off your PS3
This is incredibly important, as it's the ONLY way to watch Blu-Ray movies with Dolby Headphone and other Dolby-related virtual surround processors. If you don't do this, you'll be getting stereo with reverb, or no audio at all.
1. While watching the DTS only Blu-Ray movie, hit triangle
2. Go to AV Settings
3. Scroll to the bottom, and change the 'Audio Output Format' to 'Bitstream (Mix)'.
That's it. Enjoy watching your Blu-Rays in Dolby Headphone surround!
The last time I checked those settings, that option was NOT there, or it WAS but since I didn't know what it did, I left it on Direct, since it's the raw signal! This was apparently added two years ago.
So no receiver necessary! EVERYONE who has a PS3 as their main Blu-Ray player, make sure to change the audio setting to Bitsream MIX! I dunno about any other BD player and if such an option is available for them, but I certainly hope so.
I just found this, after seeing this option for the first time!
]I have found certain tricks on using the Bitstream (Mix) setting for the BD Audio Output (Optical) setting on the PS3; actually a few.
This tutorial will show you how to use the Bitstream (Mix) setting to your advantage.
I've tested this setting and can prove to be useful for folks who have OLD Digital Surround setups (Receivers that don't support DTS, but does support Dolby Digital), and they tried to play back their DTS-HD enabled Blu-rays but only got no sound or Stereo sound.
Also, another trick became very useful to potentially get better quality sound for Blu-ray movies that have Dolby TrueHD and make it play back in DTS for folks who have a DTS/Dolby Digital supported receiver, but doesn't support the HD variants.
Make sure your PS3 has FW 3.30 or higher for this to work, I'm pretty sure all of you do have the latest FW.
Blu-ray movies with only DTS-HD Support for the main track and how to play back in Dolby Digital:
This is for the small number of people who have a much older receiver that lacks DTS support, but has Dolby Digital. These people are likely to be buying the latest Blu-ray movies that have only DTS-HD support for the English audio. If the setting for the BD Audio Out on Optical is set for Bitstream (Direct), and the Audio Output Settings has only Dolby Digital enabled (not DTS), they'll only get stereo sound. If Bitstream (Mix) is enabled, those Blu-ray movies with DTS-HD as the main audiotrack will be transcoded to Dolby Digital, and then you would have 5.1 audio.
What the hell Sony? I'd have to love to know what the hell this was AGES ago. I almost spent money unnecessarily to get DTS to work for my headphones!