I should probably start a new thread because this has gotten quickly of-topic, but I'll let it go a bit linger.
I played around with it and PCM is only 2-channel from the PS3. You can set it to 44.1, 48, 88.2, or 176.4 kHz. I set it to 44.1 kHz so it is native for CDs and there is no up-sampling. To get a LFE channel to the receiver, I have to set the PS3 to output Dolby or DTS multi-channel, but then the signal is compressed over the TOSLINK. I'm not sure which is better. Uncompressed PCM, or compressed multi-channel. I have a subwoofer and my receiver down-mixes everything to 2.1 for me. That LFE channel is kind of nice, but is it worth the compression? What do you think?