I have my ps3 set up to my TV via hmdi. When watching a bluray film it says DTS master audio I'm assuming though its only stereo that is being sent from the TV. My TV is Panasonic tx-32lzd85.

Correct, you need to connect the PS3 to a suitable AV amplifier with at least a 5.1 speaker setup to get DTS-HD audio. The PS3 will recognise the limitations of the TV and only deliver stereo audio.

Was going to suggest running optical cable from my TV to ps3 see if thast would help.

Pointless doing that. The optical sockets on both devices are outputs. All you would achieve by doing that is have two beams of light going nowhere in opposite directions down the cable.

The thing is I've got as an amp but not enough room for all 5 speakers just the centre speaker and left and right. But no real point really before I had the amp downstairs in living room.

If your amp has HDMI inputs and does HD audio decoding (or at least accepts multichannel PCM via HDMI) then you can access the Dolby TrueHD and DTS MA high-def audio tracks. HD audio can't travel by optical or coax. There's too much info in the bitstream data flow for anything other than HDMI.

If your amp only has optical or coax then use that and set the player to down-convert HD to DD and DTS compatible audio. It'll still sound really good.

Routing audio via the TV is possible (HDMI in, optical out) but it often means only DD compatibility. This should really be your last choice as it gives the poorest compatibility.

Getting a bit techie now. The amp is Yamaha RX v363. Got 3 hmdi on back 1 out and 2 in. So could I not just put ps3 hmdi into one of them. Amp also has 2 optical ins and a coaxial in. I've no ideas wat u mean set the player to down convert HD to DD

Yeah well that's what happens when you get high tech bits of gear. You do have to put in a little effort to understand the basics of this stuff and how it works. It's the same for AV gear as it is PCs, smart phones, cars, MP3 players etc. We can help. We can dumb it down for you, but there is a limit. In the end you still have to do some work too.

Your amp doesn't decode High Definition audio formats (the best quality there is and one of the reasons why Blu-rays are more expensive than DVDs.) The main HD audio formats are DTS Master Audio and Dolby True HD. Your amp will handle the best quality sound that we get from DVDs (Dolby Digital or DD for short, and DTS) and plain stereo and surround-enhanced stereo (Dolby surround) where we use the Dolby ProLogic (DPL) decoder in the amp.

If HD audio was the only soundtrack on all Blu-ray discs then that would be a big problem for people who have older gear or who simply connect their player directly to a TV. They would have no sound. So there's a fall-back for compatibility with older or less capable displays and audio systems. The options depend on the player and its capabilities. PS3 comes in several versions since the launch of the first "fat" version. Google or read the instructions for your particular version and the appropriate set up guide e.g. http://manuals.playstation.net/document/en/ps3/current/settings/audiooutput.html

For more info on audio formats and general audio set up have a look at this

Whilst i understand what your saying, what if i was to connect the PS3 via HMDI to the AV. Then i go into PS3 sound settings what do i press there do i press HMDI or do i press Optical Digital. And do i connect the PS3 via HMDI to TV or to the AV.

Mine goes HDMI from PS3 to AV unit, HDMI from AV unit to TV. I don't think I did anything to the PS3 It just worked out of the box...

Yes but what do you select on the sound setting in Ps3 do you select HMDI or do you select Optical digital.

Well if you are using HDMI connections it makes sense to select HDMI. You would select optical only when using the optical out......I didn't have to select anything it automatically connected when plugged in.

Do u have an optical device connected to your Ps3 from your AV.

NO. But, I have an optical cable from the Amp to the wireless headset.
I think I've lost track of what it is you are trying to achieve.

For multichannel surround like True HD and DTS HD audio you would normally connect the PS3 to the amp via HDMI, then an HDMI from the amp to TV.

Seeing you are only using the front three speakers you would not get surround sound in any format, the audio would be down mixed to 2channel, the only upside would be it would most likely sound better than the audio over the TV.

In your case I'd recommend making two connections from the PS3. The first would be HDMI (note the letters in the correct order ) from the PS3 to the TV. That takes care of picture. The second connection would be optical from the PS3 to the AV. That takes care of sound. Let the amp deal with the fact that you have no rear speakers rather than a HDMI handshake making decisions about how your system should be set up.

In all likelihood you won't have to change any of the PS3's HDMI settings for picture. But you will have to change the sound settings.

PS3 menu > Settings > Sound Settings > Audio Output Settings > then you want Optical, then tick the boxes for DTS5.1, DD 5.1 and the rest of the audio formats that your amp supports via optical. Before you ask... No, sorry, I'm not going to tell you what the rest are. I haven't time to pore over your user manual for something that you need to read yourself. That's your job.

Well having tried for a good 3 hours yesterday with the amp out im still none the wiser. I tried the Ps3 to the TV hmdi2 which was already standard before the amp. As i said before the HMDI on the amp are 3, Out, DVD and DTV/CBL. Got 2 optical in CD and DTV/CBL however the DTV one is a tad broke but the CD one works fine. Not wasting anymore time on it back in the box will have to make do with the sound from the TV, hopefully in the next week or so will get a new TV which will have Dolby Digital built in.

Just do this:

PS3 > HDMI Cable > Either HDMI IN PORTS ON AMP > HDMI Cable > From HDMI OUT on the Amp to your TV

As for settings, depends on your Amp, I'm not going to look it up, it should be listed on your manual for it pretty clear, go to settings on PS3, set Audio Output to HDMI, then select which formats your AMP can use, and confirm, and that should be that.

edit: After looking at the model it seems DTS MA is not supported, so in that case just choose normal DTS and Dolby Digital (along with 44.1Khz Stereo and 48Khz Stereo of course).

Well the only imputs on my Amp are the OUT, DVD and DTV/CBL. Thanks for your input Ash but gonna leave it besides with only the centre speaker front left and front right as my only option dont think i would get the sound i would like.

I'm assuming your are selecting the correct source on the TV?

Yes, i have a sky HD box which is connected directly to the TV via HMDI 1, PS3 is connected via HMDI 2 to TV. I also heard you can connect the Sky HD directly to the amp.

OK, so when putting the PS3 to the amp then the amp to the TV, you get sound from your speakers (Centre, left/right) The TV speakers are not used?
If that is the case, the sound you get via the amp speakers should be far superior to those of your TV.
Yes, you should be able to put your Sky via your amp.
I'm still at a bit of a loss as to what it is exactly you are trying to achieve, that you are not??
Excuse me, if I'm being a bit dim here....

Id get sound anyway because i would have it by digital optical from the amp to the PS3. I was asking the question based on what people have said saying you get better sound through putting your devices to your amp by HMDI. As i have stated i only have 3 slots on the back of my amp. Anyhowe thanks for your input.

The digital audio signal on HDMI is more or less identical to that going over optical for all but the HD audio formats. If you just use the bog standard Dolby Digital or DTS 5.1 surround formats then optical will give you the same results as HDMI.

The advantage of connecting the HDMI to the amp rather than HDMI to TV and optical to amp is mainly convenience.

You need fewer cables for a kick off. Also the amp switches the audio to the speakers and the pictures to the telly at the same time so you only need one remote to select between PS3 and Sky (or whatever). You don't have to remember to select PS3 on the TV and then pick up another remote to select PS3 on the amp. And of course there is the benefit that on Blu-Ray disks you can take advantage of the higher quality formats they have which you can only get via HDMI.

Though whether you would really notice with "half" a system is another matter.