Thanks for you reply I actually didn't think anyone would respond, however I have a solution for the problem and yes my ps3 does actually play DD 5.1 with this setup through HDMI, I just can't get the xbox to work. The DD 5.1 symbol appears on my avr screen and I hear full audio in all speakers on the ps3. To get my xbox to work I have decided to buy a splitter for my optical output cable coming from the avr and then have two optical output cables from the splitter, one going to the xbox via an AV componant > Optical output adapter. The second optical output cable going to the LCD tv which at the moment I currently have the one optical output cable setup like that which has allowed DD 5.1 on the ps3. I think it's SFE or standard left/right speakers working for normal digital tv via the built in freeview.
I did however have to change the BD/DVD audio settings from 'LCP Linear?' to Bitstream for it to play dd5.1 during blu-ray movies as at first it was only playing on ps3 games and dvd's. But what you've said sounds correct also, so why is there 5.1 then on the ps3? I don't have an HDMI port on the back of the avr, is it possible that it can only receive it via other built-in features on say the tv, xbox or ps3?
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