[davepuma]

Unfortunately not. The TV's audio output will be 2.0 stereo. If you want true surround sound (not pseudo matrix'd effects like Dolby Pro Logic) you have to connect directly. To this end, I would make the PS3 the priority and connect via optical. If you want surround sound from the other sources, you'll need a 3 way manual optical switch. However, it may well be that the only audio output from the TV's optical connection is from the built in tuner. You would need to check the manual and try it for yourself. You could simply use the DAV as an audio device and omit the video connection (SCART) to the TV. I would stick to the PS3 for disc spinning unless you have another reason to use the DAV for playing discs (multi-region perhaps?).

Muting the TV might result in you having an annoying mute symbol on screen so it's often best to simply turn the sound down on the TV manually.