Help with PS3 ( Sound, & Display ) ?!?!?

Nothing is wrong with my surround sound but when ever i enable the sound for 5.1 dolby for my system, the TV speakers turn off. So the only sound that i get is from my 5.1 speakers and nothing from the TV. Also, on my HDTV the font looks really small and whenever i have something loading, I see a loading symbol on the top right but only half of it. I think there is something wrong with the display but i dont know what. I set everything perfectly and there should be nothing wrong. My TV and PS3 is running through a monoprice HDMI cable (1.3a) and its on 1080i. My TV is a Sony 30" ( KV-HS420 )

I would appreciate it very much if i could get answers to all these questions.

PS : there is nothing wrong with my TV settings ..