I need your help please!

[RealMFG]

Alright I will start from the top. I don't know anything about Surround Sound.

That being said here is my problem:

I have a PS3. I will have an LCD TV soon. I was thinking of getting this - http://www.abtelectronics.com/product/28942.html.

Then I read that you cannot use HDMI with that receiver for audio. The receiver only uses HDMI for video. For audio, I would have to use an optical cable for my PS3. Then I read that for PS3, you can only use an HDMI wire in order to have 7.1. That being said, should I downgrade to 5.1, and would using optical instead of HDMI result in "compressed audio" (which is what I also read), and thus worsen the audio quality?

Thank you.

 

[Seth=L]

The HDMI inferface has more potential for audio than Toslink (or other SPDIF protocols) and can handle uncompressed LPCM from the PS3. SPDIF can only handle 2 channel PCM and legacy Dolby Digtal and DTS streams. On a budget of $500 for speakers and a receiver, you aren't likely to get all the features, and SQ you want.

 

[mpompey]

Do you have the 7 speakers and the sub for 7.1 yet. If not, go ahead and go down to 5.1. You may be able to get better quality gear shooting for a 5.1 setup then trying to max it out for 7.1.

However, if this is going to be a hobby that you get into here's an equipment progression that I usually follow:

1. Display
2. Receiver/ Components
2. Front speakers
3. Surrounds
4. Center
5. Sub

Rinse and repeat