Those options are ones you set on the PS3. On the PS3 while playing a movie, hit Triangle and choose Sound Settings (or could be AV Settings, can't remember). There's options for volume and channels. You need to have channels set to "Left+Right", otherwise you will, without fail, get static buzz. I don't think the volume setting matters, but they say it has to be +0.
This one is unlikely and I'm just throwing this out at ya not very seriously, but maybe you could be having a bandwidth problem with your HDMI cable? They say all HDMI is the same as it's just ones and zeroes, but there's difference in how
many of them a cable can carry at any given moment. Basically what this translates to is that if you're running very high resolutions on very long cables you're not gonna get a picture on a cheap cable. I still don't recommend paying $300 for a Monster cable, but rather getting a $25 signal booster first

Maybe the 1080P with both the DTS and LPCM in the stream is just too much for your cable.