Do I NEED a new receiver with a PS3 doing all the decoding?...:confused:

[TheycallmeBruce]

Hello all.

First post, but been watching the Hot Deals forum daily, great place!

After reading a lot, I am unsure if I need to upgrade to a different receiver. Since I am using the PS3 and it does all the decoding, do I need a receiver with all of the True HD and Lossless audio decoding capabilities?

I currently have a Kenwood VR 6070 THX Ultra Certified unit. w/the following specs: It does have 6.1 inputs, optical in and out, but no HDMI

Technical Details

* Number Component Video Inputs : 2
* A+B Speaker Switching : Yes
* Front Power (Watts) : 100 x 2 @ 8 Ohms
* Center Power (Watts) : 100 x 1
* Surround Power (Watts) : 100 x 3
* Bandwidth @ Rated Power : 20Hz - 20kHz
* THD% at Rated Power : .09
* Dolby Pro Logic : Yes
* Dolby Pro Logic II : Yes
* Dolby Digital : Yes
* Dolby Digital EX (6.1) : Yes
* DTS : Yes
* DTS ES (6.1) : Yes
* THX : Yes
* Number DSP Modes : 5
* Multi-channel Input : 6.1
* Number Digital Coaxial Inputs : 2
* Number Digital Optical Inputs : 2
* Number S-Video Inputs : 5
* Subwoofer Output : Yes
* Phono Input : Yes
* Number AM/FM Tuner Presets : 40
* Remote Type : RF/IR Learning Remote
* Video Display of Receiver Audio Settings : No
* Warranty Parts : 24 Months
* Warranty Labor : 24 Months
* Center Power (Watts) : 100 x 1
* THD% at Rated Power : .09
* Number DSP Modes : 5
* Dolby Pro Logic : Yes
* Dolby Digital : Yes
* THX : Yes
* DTS : Yes
* Number S-Video Inputs : 5
* Subwoofer Output : Yes
* Number AM/FM Tuner Presets : 40
* Remote Type : RF/IR Learning Remote
* Video Display of Receiver Audio Settings : No
* Front Power (Watts) : 100 x 2 @ 8 Ohms
* Dolby Pro Logic II : Yes
* Bandwidth @ Rated Power : 20Hz - 20kHz
* Surround Power (Watts) : 100 x 3
* Dolby Digital EX (6.1) : Yes
* DTS ES (6.1) : Yes
* Phono Input : Yes
* Number Digital Optical Inputs : 2
* Number Digital Coaxial Inputs : 2
* A+B Speaker Switching : Yes
* Number Component Video Inputs : 2
* Multi-channel Input : 6.1

I was looking @ the Onkyo 805 but dont really want to spend the $700-$900. ESPECIALLY if I dont really need it because the PS3 is doing all the decoding.

The sound that it is producing sounds really good! All the channels are working except for the rear, but that works if I have the appropriate audio source. I can definitely hear the difference with the Blu Ray experience.

PS3 connected to the HDTV through HDMI
PS3 connected to the receiver through optical

I have the receiver set to "auto detect" so the audio signal wont be a matrix or simulated.

I played 300 and switched between the 3 audio options and the first 2 that were Dolby Digital and Multi Channel I couldnt hear any difference, but when I switched to the 3rd audio which was Linear PCM 5.1 but it didnt sound as good as the other two.

Am I totally confused or close to understanding?

Please help.

Thanks in advance.