I believe that if you have a newer receiver that can decode Dolby true HD and DTS Master, you are better off sending the data Bitstream if it is an option. That allows the receiver to do the proper decoding and not the PS3.
By the way, I have been looking on my PS3's menu for a Bitstream option and have not seen one. If you can point me in the right direction, I would really appreciate the help.
My 60GB has the Bitstream and LPCM option. If I get a chance I'll borrow a digital camera (I am a die hard film guy) and show you a screen shot.While the PS3 has always been able to decode DDTHD and DTSMA internally and output the audio as LPCM via HDMI, it has never been able to bitstream those codecs over HDMI. Unless they added that functionality and I've managed to miss it in the news, you will be getting a high quality dolby digital signal if you choose bitstream. That said, it is perfectly proper to decode the audio in the player and use LPCM.
Yes, I get that. The point is HOW it deals with DDTHD, DTSMA, and DD+. If you choose bitstream, it will not send these codecs to the receiver via bitstream. It will decode them internally then re-encode them as a dolby digital bitstream.My 60GB has the Bitstream and LPCM option. If I get a chance I'll borrow a digital camera (I am a die hard film guy) and show you a screen shot.