PS3 (HDMI or OPTICAL)

[#1]

Many arguments online regarding this.
I have just bought a YAMAHA RXV367
I currently have it plugged in as follows (PS3  -->  RECEIVER (via hdmi)  --> TV (via hdmi)
When playing games and generally using PS3, the yamaha displays PCM on the screen, will Optical be better? will it diaplsy 'Dolby Digital'
Really confusing me, which should i use??????

[#2]

This may sound silly but have you looked in the ps3 setting? and does the 5.1 show up with all the boxes lit up in the bottom right corner?

[#3]

Yeah i tinkered with the settings.
When the receiver is plugged in via hdmi, when i select audio output to be hdmi (from ps3), then select auto, the only 2 boxes ticked are 2 channel PCM. I plugged it in via optical last night and it displayed Dolby Digital straight away.
From what i have read PCM is better as its uncompressed audio, but its only sending 2 channels. Sticking with optical until i speak to someone at Richer Sounds this weekend 

[#4]

Yeah that would be your best bet, to talk to richer sounds.