PS3 home theater setup suggestions

[Barion]

I did a quick search of topics pertaining to my topic and I think I may have a setup a bit too unique, so I thought I'd throw it out there to you experts and get some suggestions to maximize my existing equipment for optimal home theater experience.

I use my PS3 to play Blu-ray movies and it's connected to a Sony WEGA 34" CRT HDTV with a max resolution of 720p/1080i. Currently I'm using the PS3 component cables. For audio, I have the PS3 connected via digital optical cable to the Bose 3-2-1 system, which uses two speakers and the "Acoustimass" to simulate surround sound (pretty effective in my tiny living room).

This is a pretty low end HD home theater, and in a year I'll upgrade significantly to a 50" plasma (or LCD) in 1080p with 7.1 channel audio, but for now, I'd like any suggestions anyone may have to optimize my PS3 setup to best utilize what limited equipment I have. Should I bother using an HDMI cable? What PS3 setup settings should I use?