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HW-C560S/Playstation 3 audio problem help

Ok, I just got the C560S and I love it except their is one thing I cannot figure out. I have the HDMI going out to my TV. And an optical cable for the Anynet+ which all works fine.
I then have my PS3 connected through the BD/DVD HDMI slot.

For some reason with the PS3 anytime I am in the main menu or playing a video game the sound cuts in and out.

Yet when I am playing a blu-ray movie the audio is perfectly fine.

On the screen of the receiver all the speakers and l.pcm signs go blank, then cut back on. The audio goes out then back on every 5-10 seconds.

Are there settings I need to change?

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