That sucks, they should at least offer you a refund or credit. I think the other Kanex USB+HDMI model is even worse so I don't think you really want that... it's only two channel audio... not even 5.1.
I wish I had seen that earlier... I ordered/received the Monoprice one - Keep reading for that experience...
BTW, this won't make you feel better but it's a long standing fact that Toslink optical doesn't have the bandwidth to support the latest HD uncompressed audio standards so what made you believe they had somehow magically solved this problem?
I knew this, actually. I was hoping that the USB portion of these adapters would be for more than just power. On the Mini Displayport+USB+Toslink adapter, the USB is power only - A fact that Kanex did not initially state on the product's ORIGINAL page. The product page went so far as to state that it passed uncompressed audio formats such as TrueHD. It has been modified since to reflect the fact that it does not do this.
Sorry to hear that Osip

So it is as we guessed and they do
not actually support HD audio codecs. So, the only real benefit of an adapter like this is to have audio and video on a single HDMI connection - a fair offer except that the price is Very high IMO considering this is the only gain. Ah well, sorry you had to be the lab rat to find this out... but you have saved the rest of us some $ so I thank you.
$100 and I have to say that's a small consolation.

Thanks for the sympathy, though. I haven't given up on the Monoprice adapter as I'll discuss at the end of this post, but I have shoved the Kanex one into my laptop bag for now.
I'm not familiar with the outputs of the PS3, but even if the adapters worked, how would you get your audio?
BINGO! I doubt the 7.1 uncompressed audio would make it through this exchange.
I'm guessing that it won't work. Not sure if the Apple LED can take a 1080p signal.
The LCD will just upscale it to the max resolution as it would any other signal fed to it. I'm sure it'd take the video, but at the loss of the surround audio.
And now, the next ordeal...
I'm definitely curious to hear some reviews of the monoprice adapter... no driver required for multichannel audio output?
I was out of town over the weekend, so I just now started playing with the Monoprice Mini Displayport + USB adapter. In Snow Leopard, it's 2 channel only. In Windows XP, the same. I'm thinking/hoping that this is merely a driver issue that can be resolved by some resourceful soul out there. Windows XP is installing generic USB Sound Card drivers for the adapter, which leads me to believe that this might be possible. I'm trying to download versions of the Realtek HD drivers to rig this and I'll keep you all posted.