Question about connecting cable box and PS3 to soundbar

So I have the Sony PS3 soundbar. It doesn't have any HDMI ports. It only has an Digital Optical and RCA. Right now the way my set up is that the cable box is connected to the TV via HDMI then I have the RCA cables from the TV to the soundbar. And my PS3 is connected to the TV via HDMI and the PS3 is connected directly to the soundbar via optical.

Question is whether this is the best set up or should I just connect the optical from TV to soundbar and run HDMI from PS3 and cable box to the TV. so that would mean Cable Box > HDMI > TV AND PS3 > HDMI > TV. Then TV > Optical > Soundbar.

If how it is set up already is the best way then should I have the RCA cables connected to the cable box directly?
Edited by ruzair - 11/4/12 at 2:44pm

Thank you for the quick reply. Yes the settings are set in the PS3. Everything is checked except for 88.2 and 176.4 kHz like I read around. Should I check those too? I tried and when I do it says it may cause some damage to the speakers so then I unchecked them. But wouldn't the soundbar figure out which to use on its own?

Yup I have. No is clear about whether it is safe to use those two settings. Anyway thanks again