I just have an hdmi cable from my ps3 to my tv, then connect the "audio out" connection on my tv to my receiver. My tv in the basement has optical audio out so I use that, but the tv in my room only has a headphone jack lol, so I use that to connect to my stereo in my room. My stereo in my room is old, so I'm not really worrying about maximizing quality (although it does sound awesome), but I like just using hdmi and audio out in basement because it's very convenient. I just leave my receiver on the one audio input and then whatever sound is coming from my tv plays through my surround sound, whether its gaming, tv, etc, with no need to change inputs on the receiver. As far as I can tell there is no loss in quality either.
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