Surround sound from PS3/Xbox 360

Hello everyone!

first of all i would like to tell you that i have a very basic idea about audio-technicalities. still, i would like to put forth a doubt of mine to invite your much-needed suggestion(s).

A] i have two 5.1 systems (speaker-systems, not HTiBs) at my home, but none of those have digital ports (neither optical nor coaxial), only analog RCA ports. till this time i have been connecting my consoles through RCA (red & white or L/R) which means i have been connecting them for stereo sound, even though i have been getting surround sound from my 5.1s (due to internal decoder? perhaps its pro-logic II?), and very good at that (esp. in games like the 'uncharted' series). however, i wish to now have an external decoder, using which, i could connect an optical cable to my PS3's optical port, and on the other end of the decoder, use RCA cables to be connected to my 5.1's aux. inputs. i believe this is the right way? would i then get DD 5.1 or DTS 5.1 that way? ofcourse that would depend on the quality of decoder, but still, would that be equivalent to what i could have got had my 5.1s had digital ports on them?

B] also, using RCA connections, am i getting lossles HD audio? am confused, as some say that through RCA you are just getting 2ch sound, whereas some others say using good RCA connectors and with the consoles' own internal decoders, you get lossless HD audio (probably pro-logic II) instead of the lossy DD or DTS. but this is a fact that i do get surround sound through my 5.1s, & quite detailed at that. but what kind is it & how is it getting decoded (& where) is regarding what am confused.

i saw some decoders listed on indian portals, like this one. though its costly, but i suppose it would be of a good quality. however, is there any workaround to this issue? or any cheaper alternative?

please suggest. thanks in advance!

Source: http://www.techenclave.com/gaming-consoles/surround-sound-ps3-xbox-360-a-141374/

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