I got my PS3 all setup and started downloading game demos, and on the first game I got, I went to the options and noticed different surround sound options. When I changed between them I could see my receiver adjust it's display depending on the output, it went from PLIIx to DTS to MPCM then when I selected 7.1 PCM from the options list, my receiver went back to PLIIx. This leads me to believe that my receiver isn't capable of receiving a 7.1 PCM signal. Why would this be? It has 8 ch. analog inputs, and is HDMI 1.1 and can accept the 5.1 PCM, so why not 7.1 PCM? Is this an HDMI spec thing, can only HDMI 1.2 and up handle 7.1 PCM?
Another thing that confirms it's not accepting 7.1 is because when I'm in the audio setup menu in the PS3 when I select automatic, I don't see any of the 7.1 PCM formats listed. If I got the new RX-V1800 do you think it would accept a 7.1 PCM signal over HDMI?