Setting up the PS3 and Integra DTC-9.8

[Gremal]

What is the best way to set up the PS3 and Integra DTC-9.8? I have them hooked up via HDMI cable and am trying to have the PS3 do all the audio decoding, but it seems like no matter what setting I use on the Integra, it is adding its own processing.

I thought the setting on the Integra, "Direct" would be the way to go, but somehow "THX" sounds better on material from the PS3. Maybe I'm confused about what I should be outputting from the PS3. It shouldn't be Bitstream, should it?

Thanks for any pointers.