Help can't get 5.1 with PS3 and Denon AVR-588

[corky]

I just bought a Denon AVR-588 7.1 receiver and can't get it to play blu-ray movies in Dolby Digital 5.1, it will only play the movies in DD pro logic.
When playing Burnout Paradise City the receiver now plays it in DTS 5.1.
Why can't it play blu-rays in DTS 5.1 or DD 5.1?

My setup is PS3 80GB connected to AVR-588 using optical wire.
I'm using a 5 speaker setup with 1 subwoofer. (My rear speakers are connected as surround right & left)
My playstation setting I have Audio Output Setting, set to digital out optical.
I have Dolby Digital 5.1 checked, DTS 5.1 checked, Linear PCM 2ch 44.1khz checked, and Linear PCM 2ch 48khz checked.
For blu-ray disc setting I have BD audio output format for optical set to bitstream.

Note: My Satellite receiver is also connected using digital optical and I'm able to get DD 5.1 to work.