PS3 Audio Set-up

[XpReSS]

Good Morning,
To start off let me explain what set up I have:
I have a Sony STR-DG800 Receiver (oh well!!!)
JVC HD-61FH97 TV
and a PS3.

After reading the threads about Optical's audio bandwidth, I found out I can not use PCM audio. So to get to my question, When setting up my PS3 for Blu-ray's do I use Liner PCM or bitstream? I had 300 (GREAT MOVIE) in the PS3 and tried to switch between the two and I thought bitstream sounded better.. Is that because I can only use 2 channel PCM with optical?

And on a side note which is better digital coax or Optical for audio?

Ok and another quick question... As for the Firmware 1.9 update, I tried to set it for 24 Hz output, it blanked out my screen. I tried to look online to see if my TV supports 1080p 24hz and was unable to find a answer. Obliviously the simple answer would be no the TV doesn't support it (because the TV went blank)... But I was wonder if someone knew for sure.