lpcm or bitstream for bluray?


I own a PS3 and have a Cary Cinema 11a on order. I know that the PS3 will decodes hd audio internally and sends it out as lpcm and will not send out bitstream.. Does this mean that the PS3 is sending an anolog signal or is the reciever doing the d/a conversion? Would there be any advantage to using a player that outputs bitstream? How many d/a or a/d conversions are actually taking place?
mrmikesmail
Bitstream enables the receiver/preamp to do the decoding.
LCPM Lets the ps3 do the decoding, Some people with a nice decoder chipset in their setup will want bitstream.

They both are digital when they leave the ps3, thus requiring you to still use a dac.
My PS3-80 has a DSD logo on its side. I read that those units can output a DSD bitstream, but I don't have a processor with HDMI to try it. Some processors are said to be unable to both decode a DSD bitstream and do digital room correction, but Kal Rubinson has written that he observes no degradation in sound quality when going from DSD to PCM.

I assume the OP has read the Cary Cinema 11a/v thread at AVS.

db