Comment out all lines pertaining to WAV. Just put a big ole' # next to them. They're useless and will only cause problems. Next, move that LPCM line to the top of the list. They go in order and LPCM needs to be first.
Next, as to your question, the PS3 can only handle 16-bit LPCM data up to 48 Khz in either file form or over network which is a little strange since it can apparently output at much higher frequencies. But there's your answer.
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