I don't think it matters if you run bitstream and let the Cary do everything or you send it PCM (which is all you can). PCM is not an analog output, so both should sound the same.
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?