If you're not going to use the HDMI, the only other input you should use from a PS3 would be a component video connection(adapter needed). If you use anything less than that, I.E.:S-Video or composite, then it's a complete waste of a high definition movie since S-Video I believe only goes into the 5xx line range of resolution and composite is only 480i(I believe) when HD is a minimum of 720 but blue ray is usually 1080.
Now, for the 7.1 audio, without using an HDMI connection you won't get the full benefit of the uncompressed audio on Blue Ray disks either but as you stated, your receiver doesn't have HDMI in so that is a mute point. You'll get the prior audio formats available from the Toslink connection from it such as Dolby Digital and DTS.
All the other things you want to do will work great and the cool thing is that you can rather easily upgrade the hard drive to a 250gig drive and NOT void the warranty in doing so! It just uses a SATA 2.5" laptop drive.
Now, for the 7.1 audio, without using an HDMI connection you won't get the full benefit of the uncompressed audio on Blue Ray disks either but as you stated, your receiver doesn't have HDMI in so that is a mute point. You'll get the prior audio formats available from the Toslink connection from it such as Dolby Digital and DTS.
All the other things you want to do will work great and the cool thing is that you can rather easily upgrade the hard drive to a 250gig drive and NOT void the warranty in doing so! It just uses a SATA 2.5" laptop drive.