Well I tried it in type 1 setting and type 3 setting earlier on Chicken Little, and no, I did not notice any difference.
I had played an audio cd, but forget to switch the setting, (I was just quick sampling a 'Dance/Trance' CD) will try with REAL music later.
Please note; I have nothing against Trance, I just find many other forms of music much more enjoying (when sitting listening to audio).
That particular CD (Armin Van Buuren), I was just ripping to the PS3 harddrive for later playing..