I'm using the Bose Cinemax II system which is a 2.1 setup - don't quite have the room for a real system and this sounded the best to me (opposed to a soundbar).
PS3 is connected to the TV (Sony Bravia) via HDMI cable, speaker connected to the TV via optical cable.
I set the PS3 to "automatic" for sound which picked Dolby Digital 5.1 and a couple others, PCM I think. I looked through the manual list and that appears to be the proper settings (according the Bose manual, Dolby Digital 5.1 is recommended).
TV audio mode is set to "Standard" - alternate choices are Dynamic and Clear Voice - but neither sounds very good at all.
Thanks for the help