How does this Onkyo TX-SR805S work?

[blushiz]

I got this receiver a while back because I heard its quality is really good, but when I got it I soon realized it was a lot more complicated than my older receiver. I really don't know how how it works. I'm playing throguh a PS3 btw.

So here's the quick summary: The receiver is supposed to decode DTS, Dolby TrueHD, and PCM, which I heard is supposed to be like HiDef audio. Well, when I plug in various movies, the receiver automatically clicks and displays the audio through 5.1 Pro Logic II. I try selecting tureHD, PCM, and DTS but none of those options are available. It just clicks to that, which doesn't sound any better than my old $200 Sony receiver except maybe a little clearer (granted, I have low quality speakers and I'm in a semi-small room). I move through the results and I find that the listening option, 'unplugged', sounds the nicest to me, which I have no idea what 'unplugged' is. However, the sound still doesn't sound very fluid. I find the noise harsh sometimes and turning it up to -10.00 dB starts to hurt my ears. Sure, it's clear, but my Yuin Pk1 earphones from my Macbook Pro don't usually hurt my ears when I turn it up all the way. It just gets real clear and loud when I turn it up. This system isn't that way. I don't know if it's my settings or my speakers, but I was expecting a little something different. Also, what about the cool audio tracks? I don't even know if I'm getting lossless audio or not. It's confusing.

Here's my listening modes for most of my collection (sometimes varies):

Unplugged
Studio-Mix
TV Logic
All Ch Stereo
Full Mono
Theator Dimensional
Pure Audio (blue light comes on)
Direct
Stereo
Mono
MultiCh
Neo:6
PLIIx Movie
PLIIx Music
Dolby EX
Nuetral THX 7.1
THX Cinema
THX Cinema (Neo:6 icon lights up)
THX Cinema (PLII icon lights up)
THX Surr EX
Ultra2 Cinema
Music Mode
THX Games
Mono Movie
Orchestra
(btw all these listening modes all sound the same to me..it's very hard to tell the differences)

No TrueHD, DTS, and PCM like displayed in the pictures I've seen of it!

Here's how I'm setup: PS3 HDMI into receiver, HDMI from receiver to TV. PS3 all audio tracks checked. Onkyo has been adjusted using the mic. The speaker icons on the receiver aren't all checked. The back two speaker icons on the receiver aren't usually lit up, only the 5 front ones (although I get sound from all 7. I can't seem to get the two back icons to light up either.

Please help. I'm lost.

http://www.amazon.com/Onkyo-TX-SR805.../dp/B000OBMX0U

see the picture of the receiver where it says Dolby TrueHD? I don't get that.