HDCP stands for High Definition Copyright Protection (I believe) and it is implemented into all HDMI connections. Most DVI connections, while digital, do not have HDCP and therefore quite frequently have the same issue you do. VGA is an analog signal, which definitely doesn't have HDCP. The way HDCP works is that if the device outputting has HDCP (in this case, your PS3, which does) and the device receiving the signal doesn't (your monitor, which doesn't) the signal is blocked. In short, this will never show a signal via the VGA connection.

If there is a way (and I don't know of this particular transition) to convert the component video cables (red/green/blue) to VGA, which are both analog, you should be able to display the signal as there's no HDCP. I will say that the way the PS3 works can oddly make issues, but 720p for games and blu-rays should be no problem, however expect DVDs to drop to 480p because upscaling isn't allowed in non-HDCP connections.

Hope this helps!

The success of these games is debateable, but they are all great quirky hardcore games:

-Beyond Good & Evil (action RPG-ish)
-Psychonauts (platformer)
-Indigo Prophecy (no way to really describe)
-Shadow of the Colossus (boss battling open world RPG?)
-Okami (RPG)
-Black (FPS) - Great bullet crazy game!

And the last is just a guilty pleasure because I'm pretty sure it's not that good, but it's cheap:

-Oni

Hope this helps!

I own over 1,000 DVDs and nearly 100 blu-rays (as well as a netflix account where I rent tons of blu-rays) and to this date I can't figure this out either. On DVD, it's usually those that say "anamorphic widescreen" but this is rarely on the blu-ray case. More importantly, though, are you suggesting that you won't rent a particular movie simply because of the black bars? If you wanna watch movie and it has the black bars in the blu-ray you're out of luck, plain and simple. Having a 51" 1080p LCD myself, I understand how much that sucks to see the bars, but I'm not going to avoid a specific film I want to watch because of the black bars.

To get back to your question, I can't seem to tell what's the indication and what isn't. I think the aspect ratio might help, but most blu-rays have the same aspect ratio regardless of bars or not.

Anyone know?

It sounds like your LCD doesn't have speakers (which is why you purchased speakers) and therefore I'm assuming your monitor doesn't have sound output. Correct? Is there a headset jack or something you're using? Does the HDMI port on that monitor take sound (most don't)?

If so, make sure your Audio settings show the audio output as HDMI. If this all doesn't work, just use the basic composite video cables that came with your PS3 (composite) and make sure the composite is your audio output (as long as HDMI remains in your Video settings, there will be no issue with the composite video cable being plugged in) and use those Red/White plugs for your audio. You may need to use adaptors to get them to all work together, but that's your best bet.

The biggest key, especially if you're going HD, is to get a surround sound with at least the basic decoders. A 5.1 system that is Dolby Digital AND DTS compatible is ideal (and you're going to notice that DTS is more rare in boxed systems). You also need to make sure your surround sound receiver has at least 1 optical input for surround sound (which you should get at least one unless you get one with a DVD player built in). I have been able to get my friends good enough surround sound systems for about $250-$300 that have 2 optical, DTS, and Dolby at places like Best Buy. If you can spare a few more bucks ($300-$500) head to your local Circuit City and pick up an Onkyo system; it's my opinion those are some of the best box-in surround sound systems.

As for the HDMI, I personally have issues with using it for audio with my 360, so I use optical for both my 360 and PS3, but it's all up to you how you want to hook it up. Hope this helps!