i have no idea how to set up surround sound for ps3

You will need to buy an AV receiver as well as speakers. Connect the PS3 to the AV Receiver with HDMI, and another HDMI connection from the Receiver to the TV. You do not need any additional DVd players or Blu ray players; the PS3 is your player.

You can buy individual speakers, plus an AV receiver, or you can look at home theater in a box options that have the speakers and receiver/amp all in one box. Normally, I would recommend spending about as much on audio as you did on your TV.

How much was the TV and which one is it? Or, how much do you want to spend on sound?

That's a lot for an AVR (AV receiver). Check out the amps and receivers section of this forum for suggestions. I got a great factory refurb for around $250 and I'm quite happy with it.

For a completely radical system on a budget, you can look at something like the Energy Take Classic 5.1 for about $400 on Amazon.

http://www.amazon.com/dp/B001202C44

Then pair it up with something like a Yamaha HTR-4063 for about $250 on Amazon.

http://www.amazon.com/dp/B003CP0KGE

You'll end up with something that is worlds better sounding than any $500 Blu-ray HTIB setup you'll find, it will have far more input options, and won't be tied to a Blu-ray player that is just useless junk sitting in your living room when the laser dies on it.

For the extra $150, this is by far the better route to take.

If you really want to hit the $500 price point, keep the same Yamaha receiver, but look at this $250 Polk 5.1 speaker set instead.

http://www.amazon.com/dp/B000WGJX5A

While I have never personally owned the Energy Take Classic set in question, I have spent a couple of hours listening to them. For $400, that speaker set is frankly fantastic. It is noticeably better than any of the <$300 packages I have seen, and it takes $1000 package to beat it. If I were to put together a new setup in my bedroom right now, those Energy's would be at the top of my list.

I second this suggestion. I bought a refurbed Onkyo 605 a few years ago for $250. I still see no reason to replace it. It should last me through a handful of speaker upgrades. As long as an AVR can output what you want, passthrough what you want, and has enough connections, there's little reason to shell out tons of money unless you really know what it is you're getting.

Also, I'm not sure if this has been suggested, but as a general rule, the majority of your cash should go into your speakers, not an AVR. Not only is the quality of speakers more important than the quality of your AVR, but chances are that your speakers will far outlast your receiver anyway (tech gets outdated, lots more working parts to get busted, etc).

I strongly recommend making your way over to the audio area of AVS. You'll find great information and posters there who can help you.