PS3 setup questions

My new PS3 arrived and ugh! - can't figure out how to output PS3 source audio through my 2-channel speaker setup (as you know those crappy built-in TV speakers don't cut it) while retaining the HDMI visual output. Do any of you AV wizards know if it's doable? It was easy with my old DVD player, as it had the analog audio connectors plus a HDMI connection. Also, anyone familiar with the Sony Blu-Ray welcome disc that's included with the new Playstation's? I set my TV and PS3 to output a resolution up to 1020p, but that damn welcome disc only outputs to 720. Is that the way it's suppose to be? I need to rent a recent Blu-Ray movie and see if it bumps up my monitor image to 1020i/p.