I put the optical there because i thought i would need it for my tv to be on the surround sound. But I went in to my ps3 settings and messed with those. It wouldn't let me unchecked all the 2.0 sound options but it had the 5.1 options already checked. So I then checked ARC i think it was called? That seem to do the trick now the auto surround seems to be working. Just out of curiosity what is ARC?
Once again thank you everyone for your help!