New HTIB and PS3 but need help connecting...

[LegendBlak]

First off, I have a vizio VX32L, PS3, and a Sony HT-DDW790(Will upgrade later but for now this is what I'm stuck with).

The connections I have so far is:
- PS3>TV via Component(Getting HDMI soon)
- TV>Reciever via RCA
- PS3>Reciever via Optical(For gaming/movie)

What I'm trying to achieve is the best possible sound for watching Blu-ray and gaming.

On the Settings(PS3) I've got DVD/BD to Bitstream and Audio Out to Optical and Formats checked on "DD 5.1 Ch", "DTS 5.1 Ch", "Linear PCM 2 CH. 44.1 kHz"(Auto checked and can't uncheck for some reason), "Linear PCM 2 Ch. 48 kHz"(Same as other Linear).

The ones unchecked are:
- AAC(I don't know what that is)
- Linear PCM 2 Ch. 88.2 kHz(Don't kow if I can support that)
- Linear PCM 2 Ch. 176.4 kHz(Again, don't know if I can support this)

*Edit* Couple more questions.

1) Should I put my DVD/BD(PS3) Audio Output Format(HDMI) to Linear PCM or Bitstream? For future preferences.

2) Should I leave BD Audio Output Format(Optical Digital) to Bitstream or to Linear PCM?