New to sound receiver, confused with surround setup.

[KaKKeBu-ray]

Hi all,

I'm still pretty fresh on this forum and I feel I still have lots to learn about Hi-fi technology. My simple question is what is the best surround setup for my receiver when watching Blu-ray movies and playing games because there are so many buttons/alternatives to choose from? I am simply confused

I have a PS3 and a Onkyo 506 receiver. Onkyo 506 as I understand is a pretty base one that does not have DTS-HD nor Dolby TrueHD. It also has HDMI pass through which seems can not send audio to the receiver through HDMI. Because of that I've seperated HDMI signals for only visuals and Optical for only audio.

What I need is help from you guys to check out if my Video Settings on the PS3 is corrected connected to my Onkyo 506 receiver. Here is my PS3 current Video Settings:

PS3:

1. Video Settings - BD/DVD Audio Output Format (HDMI) - Linear PCM

2. Video Settings - BD Audio Output Format (Optical Digital) - Bitstream or Linear PCM???

I don't understand number 2. Should I choose Bitstream or Linear PCM since I've connected PS3 to sound receiver with Optical??? (My current output is Bitstream).

After I've chosen this what surround setup should I have on my receiver to get the best surround for watching movies or playing games?

There are 3 buttons, MOVIE/TV - MUSIC - GAME. In MOVIE/TV button when playing Blu-ray movie it displays "DTS Audyssey" (or Dolby depending on what audio the Blu-ray support) (Optical/Bitstream). BUT here is the thing that confuses me IF I choose a different PS3 Video Settings - BD Audio Output Format (Optical Digital) - to Linear PCM (insted of Bitstream) the MOVIE/TV button now displays "PCM DTS NEO6 Audyssey".

What is the corrected one?

On the MOVIE/TV button there are of course many more options to choose of which I don't understand half of it. Technically I still have a long way to learn as I am new to this but could some one you also care to explain what is PCM, NEO6 etc. is?

EDIT: By the way can anybody tell me what is the "Pure Audio" button with blue light is for?

I am confused with all the options to choose, I need help, what is the correct setup for on my receiver and PS3 for the best surround sound possible when watching Blu-ray, playing game or listning to music?

In advance thank you all for helping me out


Jack