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When you send the audio bitstream it is not being processed by your ps3 at all, whatever is being sent out probably can not be processed by your receiver. When you change the ps3 to pcm it processes the signal internally and outputs something that will work with any receiver.
There should be more than one English audio track on a Blue Ray, most have Dolby True HD or DTS MA now as well as just the regular Dolby 5.1 or DTS, make sure that they are not selected as the audio track as they can not be output over spdif, only HDMI can support the bandwidth required.
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