You've not mentioned what speaker setup you have- Polk R50's?
Typically, a good place to start is to put all speakers to small, not to large/fullband. Crossover set to 80hz if they're decent-sized bookshelf speakers or floorstanders, 120hz if they're satellites. Set your sub's LFE dial all the way up. Set the LPF of LFE either to 80 or 120hz depending on your crossover levels.
Set your PS3 to output as Linear PCM.
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