It seems the PS3 may not be up to snuff with all the latest codecs as I thought. EngadgetHD is reporting that though PS3 can internally decode Dolby TrueHD it does not currently support DTS HD or allow sending the bits to be decoded by say an HDMI 1.3-compliant receiver. No matter, my 3806 only accepts PCM multi-channel through HDMI now. It will be some time before I can get the 3808 CI at which this will become an issue. Maybe Sony will release a patch that will fix this.