PS3 Audio Out selection?

[DonnieZ]

Got my PS3 about 2 weeks ago and so far it's proven to be all I've wanted and maybe a little more, but I bought it primarily as a Blu-Ray player though.

Here's my issue:

Sometimes when I play movies, either BD or DVD my Yamaha HT Receiver shows "Pro Logic" vs. "Dolby Digital" and I can tell that the channel seperation isn't as good on Pro Logic (Obviously..)

I don't have a real high end Yamaha receiver and it's about 2-3 years old. It's an HTR-5830. I have HDMI going from the PS3 to the display, and an optical cable going from my PS3 to the receiver. The PS3 is set to "Optical Out"

I don't know the best selection for Bitstream / Linear PCM and what supported audio codecs I should use. If it's on Linear PCM, I don't think it ever goes into Dolby Digital. If it's on Bitstream, I get a warning about some of the audio on the disc not being playable.

I THINK the issue with some of the BD movies is the newer lossless audio that's on the disc and that audio stream not being supported by the receiver.

What's the best way to configure the PS3 audio in this situation?