The only downside with not running HDMI directly to the receiver from the PS3, is that you wont be able to decode the newer audio formats coming out. Like Doldy True HD and DTS Master Audio. So you'll still have to run an optical cable from the PS3, to the receiver. Which, if you receiver isnt HDMI, it cant do it anyway. You'll still be able to do Dolby Digital, And DTS though.