Thanks for the advice 'dragon'.....I've checked if there are any settings on the TV to change input, but there's nothing, I think it's a pretty basic tv, even if it is HD ready.
I probably got the abbreviation wrong with regards to the "spifdif" on the bt vision!
I forgot to mention, I'm getting bt vision sound when I switch from bt vision HD via the splitter to PS3 HD (again, visual working fine); Fiona Bruce's voice talking while Apocalypto is playing on screen!!!
I think I'll have to look into your other suggestions, I think what you mention about optical/digital coaxial, is what one of the guys at the shop was trying to encourage me not to do, (I think he thought I couldn't handle trying to set it up.......in actual fact I'm pretty good at setting things up as long as I have the right equipment in front of me, I just don't understand the technicalities of it!) I'll give that a go with my speakers.
Not sure about HDCP??
Thanks again, appreciate your help
