PS3 Followup - Does Support LPCM and Bitstream....
Please refer to PC World article:
Burning Questions: PS3--The Blu-ray Movie Experience
How does the PlayStation 3 stack up as a movie player? We kicked back with the controller and popcorn to find out.
Melissa J. Perenson, PC World
Friday, November 17, 2006 1:00 AM PST
"The PS3's default is to convert recognized audio streams to Linear PCM, an uncompressed audio format, for output via HDMI or digital optical audio. This can be advantageous if, for example, you're outputting to an HDTV that has built-in speakers and decodes only Linear PCM. If you're using your own home theater receiver, though, you'll want to use the Bitstream setting: In this mode, the PS3 passes the audio "bitstream"--be it Dolby Digital, Dolby Digital Plus, Dolby TrueHD, DTS, or DTS-HD--through to your receiver via the HDMI or optical connector; from there, the receiver decodes the audio and outputs it to your speakers."