I don't have a ps3,but I have the same thing happening on my 7.1 set-up with my Oppo blu-ray. The lights only come on when the dvd or bd is using the 7.1 format. I listen with dolby pl2x on tv all the time and it seems to work ok. Try these movies on bd: The Golden Compass, Narnia-Prince Caspian,Hellboy 2,or The Forbidden Kingdom, all in 7.1 sound.
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SAMSUNG 5265/ ONKYO PRO PR-SC886/ FRONT SPEAKERS DEF TECH MYTHOS 1'S/ CENTER DEF TECH MYTHOS 9/ SURROUNDS ENERGY C20'S/ OPPO BDP-83/ OUTLAW 7700 POWER AMP/ VERIZON HI DEF DVR.TWO UBER 10 INCH SUBS FROM ORB AUDIO