My PS3 was working for 10mon, one day the audio over HDMI started to crackle. On dolby encoded media it would crackle and skip with an odd distortion. If I use any audio output other than HDMI on the PS3, no crackle. Nothing changed in my setup, and PS3 factory reset had was no help.

To output Dolby Digital or DTS audio, you must connect the PS3™ system and the audio device using a digital optical cable and switch to [Digital Out (Optical)] under [Audio Output Settings].
Good Luck.

DTS (digital theater systems) is the name for a company that has it's own proprietary digital encoding for the audio, just as Dolby Digital does. In order for your media to have audio output in DTS, it actually has to be encoded with the DTS software format, AND manually selected by the user to play in that format. Incredible Hulk is NOT encoded in DTS. Select a movie that has the DTS encoding by checking the rear label of the case on the format table.

HI, make sure the audio out put on the ps3 is set to hdmi and set to stream dolby digital,aac, dts, etc,then set audio input on your 696 to hdmi,also check that audio out for hdmi is set to off in the hardware menu on your amp,if you still have problems use the optical out on the ps3 as the ps3 does not out put hd master audio or dolby true hd only pcm, you will still get dolby digital.

hope this helps.

CABLE GUY.

DTS-HDMA and Dolby TrueHD cannot be passed to your receiver via bitstream on the PS3. DTS-HDMA cannot be decoded either so you're out of luck there.
Dolby TrueHD can be decoded internally on the PS3 assuming your firmware is up to date. Set the Blu-ray HDMI output to PCM and you can then pass it to your receiver.
If this doesnt work, do a system update on your PS3.

I just bought my PS3 and noticed this exact problem, Go into your audiosettings click hdmi. then go to manual. Uncheck Dolby 5.1. save your settings. This fixed the static for me. Sony should fix thier 5.1 drivers

IT IS ALWAYS BEST TO CONNECT ANALOG AUDIO IN ADDITION TO THE OPTICAL, COAXIAL OR HDMI AUDIO CONNECTION. IF USING OPTICAL OR COAXIAL CONNECTIONS BE SURE TO CONFIGURE IT IN THE RECEIVERS DIGITAL ASSIGNMENT AREA IN SETUP.
ALSO, ON THE FRONT OF THE RECEIVER IS AN INPUT MODE BUTTON, PRESS THIS BUTTON UNTIL AUTO IS DISPLAYED

I CHANGED THE AUDIO SETTING UNDER HDMI FROM AUTO TO MANUAL AND I REMOVED DOLBY 5.1 FROM SELECTIONS.LEFT THE OTHER 2 SELECTIONS THAT WERE ALREADY SELECTED FROM AUTO SET FOR HDMI I HAVE NOT HAD AUDIO PROBLEMS SINCE.

Ya I get a humming sound when the volume on my Daenyx is turned up to 1 quarter the volume,Does anyone else have this problem? These TV's have great picture and sound when the humming isnt there but I cant find to much info on them.I have heard that these tv's might be made by Daewoo but I cant confirm this,Does anyone know if this is right??

PCM is standard when using HDMI cables, you are passing an already decoded audio signal to the receiver and it outputs the sound and does nothing more. The reciever calls this PCM, your PS3, when pressing select should show that it is decoding the dolby digital HD. There is no quality difference in the two. PCM is the same because it is un compressed audio. So when using HDMI, no matter the signal that the movie or music is playing, wether it be dolby or DTS, you will see PCM when using HDMI.

Go to audio options, and manually DE-select Digital 5.1. That should fix it. It did for me.