You don't need to connect the hdmi and component from the ps3 to the receiver. Just run the hdmi from the ps3 to the receiver and then component from the receiver to the tv. That'll allow you to get the lpcm and dolby truehd audio (no dts-ma yet sorry) and the hd picture as well. The 705 can't pass 1080p via component but since your tv doesn't have an hdmi in I doubt it's 1080p so it doesn't matter for you. Remember to set your ps3 audio output to pcm and not bitsream, and your video resolution to 1080i or 720p and you'll be set.
