What Kind of Sound Am I Getting? Lossy or Lossless

[gvatty]

I use a PS3 as my blu-ray player which is connected to my Onkyo TX-SR804 via an HDMI cable. I actually have it set up for 7.1 sound. The receiver can matrix Dolby Digital 5.1 to the for surround speakers with my satellite tv receiver but cannot do so with blu-ray discs on my PS3. The manual for my receiver says its Supported Audio Formats are:
• 2-channel linear PCM (32–192 kHz, 16/20/24 bit)
• Multichannel linear PCM (5.1 ch, 32–96 kHz, 16/20/24 bit)
• Bitstream (Dolby Digital, DTS)

My PS3 is set to PCM because I thought by reading the forums that it does not bitstream lossless codecs.

I think the PS3 can decode all codecs, but what is my receiver actually playing Dolby True HD, DTS, Dolby Digital 5.1 or something else? Thanks for your input.