Hey I had that sound problem. When you said you get menu sound, are you talking about the main menu before booting up a game disc?
My problem was that my main menu has sound but booting up Resistance, I was getting nothing, no sound. I too was running 1.10, but I was also having trouble with my receiver. I set up my ps3 via HDMI 2 DVI directly to my HDTV for video only and for audio a direct connection via optical to my Sony STR-DE885.
I figured it was the receiver basically because I was having bitstream problem with bluray movies and figured the game was doing the same thing. PCM on bluray works but not 2+ channels. Bought a new receiver and now everything works.
If you can't try someone elses receiver or you believe its not the receiver, try to cold boot the ps3 with the game already inside, as in start he ps3 after you've turned it off from standby using the back switch. That actually worked for me before I started replacing components.