Run the AV multi cables (that come with the console) to the RCA stereo inputs on your speaker controller. Use an HDMI to DVI converter cable (if you don't have HDMI inputs on your display) for video only and change the audio output settings in the XMB audio menu to AV multi.
Works fine; no new wires/converters needed other than the HDMI/DVI video cable.
I'm currently using one of my PS3s on the same monitor as my main PC, with the PS3 sharing the same 5.1 speaker system. After trying the above method, I realize my set up is way more complicated than it needs to be, but it also works.
I'm using a monitor with HDMI inputs, so it's PS3>HDMI>Display. The sound in this set up passes through the display. Audio setting in XMB to HDMI output.
Display has a stereo mini-jack output which I have running to a mini-jack to Y splitter RCA cable, which plugs into the RCA stereo inputs on the back of the speaker controller box.
Display>mini-jack cable (male to male)>RCA stereo cable (green female mini-jack input to red/white female RCA stereo output>RCA stereo cable>speaker system controller box RCA stereo inputs.
Simpler set up: Display>mini-jack cable (green male end) to RCA Y stereo cable (red/white male ends)>speaker controller RCA inputs.
Available at Radio Shack, Fry's or whatever AV component store.
Stereo output only naturally.
For a 5.1/7.1 sound system, buy an HDMI input receiver for the simplest set up: one cable. Or use a receiver with optical inputs and use the optical output on the PS3.
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