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Instructions
Connecting PS3 to Surround Sound System
Before purchasing a digital optical audio cable, measure the distance between where your PlayStation 3 console is placed and the rear of your surround sound receiver. Make sure that the optical audio cable you buy is long enough to connect to your PlayStation 3 console and surround sound system.
Locate optical output on back of PlayStation 3 and optical input on rear of surround sound system. Remove protective coverings from each end of optical cable. Connect one end of optical wire into PlayStation 3 and the other end into surround sound system.
Turn on your TV, PlayStation 3 and surround sound system. Using your PS3 controller, scroll either right or left to the on-screen PlayStation 3 "Settings" category, and then scroll down to "Sound settings" and press the "X" button. You will see three choices, but the one you are interested in is the one titled "Optical digital." Scroll either up or down using the directional button on the PS3 controller to "Optical digital" and then press"X." A list will appear of different sound system categories such as "Dolby Digital 5.1" and "DTS." If your surround system is capable of reproducing audio formats in either format, place a check mark beside both of them. If your system is only capable of reproducing Dolby Digital 5.1 sound signals, check the "Dolby Digital 5.1" box and don't check the "DTS" box. There will be other formats on the list, as well, and some of them will already be checked, but you can disregard those. When finished, use the PS3 directional pad to move right. A screen listing your settings will appear. Press "X" and the settings will save.
Test your connection by placing a DVD, Blu-ray disc or video game into the PS3. Make sure the surround sound system is set to reproduce sounds from the PS3. For instance, on some Sony surround systems, you must set the function to "TV/Video" to hear audio from the source connected by the optical audio cable.