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you're saying it only outputs stereo from OTA HD digital broadcasts, right?
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Yes. And if using its tuner for unscrambled cable (which is possible with this TV), it still cannot output Dolby Digital 5.1. Simply put, its digital output cannot output Dolby Digital 5.1 no matter what.
Frankly, I think most professional reviewers of TVs miss this point when they test HDTVs. So you will want to check on such things for yourself before you buy anything.
By the way, otherwise, this TV seems pretty good, particularly for the money. Of course, it isn't the best that money can buy, but it looks quite good, and can be had for less than most other HDTVs of its size. For someone who does not care about sound, it seems to be a good value.
On the tech support line, they told me that the reason it would not output DD 5.1 is that they wanted to keep the TV as inexpensive as possible, so they did not want to pay the necessary licensing fees.