Instructions
Set PCM Output for Blu-ray Playback
Turn on the PS3 and press the right or left directional arrows on your controller to highlight "Settings."
Press the up and down directional arrows to highlight "BD / DVD Audio Output Format (HDMI)" if your PS3 is connected via HDMI cable, or highlight "BD Audio Output Format (Optical Digital) if your PS3 is connected to an audio device via optical audio cable. Press the "X" button on the controller to select the option.
Highlight "Linear PCM" and press "X" to select the option.
Set PCM for General Audio Output
Press the left and right directional arrows to highlight "Settings."
Press the up and down directional arrows to highlight "Sound Settings," then highlight "Audio Output Settings" and press "X" to select it.
Highlight the type of connector used to connect the audio to your audio device and press "X" to select it. If you choose "SCART / AV Multi" you will not be able to set the system to PCM output in the next step.
Highlight the "Linear PCM" output and bitrate of your choice and press "X" to select it.