Hey you spammer Leprekaun!!
( your ebay links in your siggy lol ).
We normally forbid this type of activity, but since you are a long time member I will let it slide for now..
Once you sell your stuff, please remove the links from your siggy of course, thanks!
Regarding your question, yes, it should work.... PS3 to optical in, then out to your stereo system...just have to use the Creative sw to select the Optical In as the sound source in Windows... I have not tried such a setup but I don't see why it would not work...