Pioneer Elite A/V listening modes question

[kurt vidal]

I'm running a PS3 out to my old VSX-24TX receiver using optical cable for audio and was wondering if some of you experts could answer the following questions:
A) Like most elite receivers mine has a bunch of advanced listening modes (ie: THX, advanced, standard surround). I normally just leave my receiver on THX listening mode. However, its my understanding that the PS3 does the codec decoding and sends it to the receiver. Does the receiver just see that the PS3 is decoding and disallow any internal receiver decoding or is my receiver trying to decode the PS3 signal (maybe screwing it up a little)? Should I set my listening mode to "standard surround" or can I just leave it on THX?
B) Its my understanding that w/my setup (ps3/vsx24tx) that I cant get any lossless master audio. Therefore, per recommendations on this forum I'm going to hold off on upgrade until HDMI 1.3 becomes available on receivers. Are any of you "Elite" receiver owners going to hold out until Pioneer offers this or will you buy the new Denons w/1.3 that will be coming out?
any advise would be appreciated from you guys.
thanks,