The Lookout 3 1/2 stars, Only LPCM 5.1?

[Josh]

Originally Posted by darinp2

At least in the past the PS3 had an issue where selecting PCM with optical output would only give 2.0 sound. I don't recall seeing a fix for this and would pick the lossy 5.1 track in that case myself.

--Darin

As mentioned, that is a limit of the technology. You can only get 2 channels of PCM over optical or coax connections. Your receiver will then matrix the signal into 5.1 (or more, depending on your set-up) giving you surround sound from the uncompressed stereo source. Many have found this better than the lossy 5.1 track, but its all personal preference.