I have a Panasonic DMR-EA18 that has a Digital Optical DTS Output. My question is ,what do I need to buy to allow me to listen to 5.1 channel surround sound? I am interested in knowing what product to buy, to feed this digital output?

A receiver and speakers. Specifically, a receiver with an optical digital input. There are lots of makes. Onkyo, Yamaha, Harmon-Kardon, the list goes on. Speaker brands are even more numerous.

An optical cable connects your Panasonic to the receiver. Set it up, calibrate, pop in a DVD, and you're good to go.

Is there a Make or Model number that you could recommend that I could possibly find at Best Buy or BJ's, Sears etc. We do not have many places to choose from around here. I would have to travel 40 miles plus to get to any other outlets. I appreciate your response.

Best Buy carries Yamaha and Sony receivers. I like Yamaha better.

Circuit City used to carry Onkyo until they (CC) went out of business. Onkyo is also at least online through Target (although I think they're HTIB and not just the receiver.) Onkyo is my favorite brand but that's just me.

All three brands and others should be available at most smaller electronics stores. No idea what Sears carries, although they probably have Sony at least.

Model numbers would depend on your budget, as most brands have entry level models to huge monsters costing a couple grand and more. I'd put more money towards your speakers and just get the cheapest receiver that does what you want.

Speakers are everywhere. Best Buy carries Polk, Klipsch, and others. You can also find them online, and some respected speakers are only sold online, like AV123, Axiom, SVS, Elemental Designs, etc. Go to the speaker forum here and you can waste weeks just looking at the threads on them and many more.

Went out to-day to an independent retailer and looked at a Yahama 663. It has all the bells and whistles, it might be a bit over kill for what I am interested in but then again I would have all I would ever need in mixing inputs in one package for $499.00. The salesman suggest a 5.1 speaker package if I was interested in not using any of my existing speakers. I think the name were "Dimention", but I am not sure. another 5 bills.

My brother just bought a Yamaha RX-V363 which is their smallest receiver for 200 bucks. He's not into the whole sound quality thing, he just wanted 5.1 and nothing more. However it does sound pretty good even with all his extremely mismatched speakers. For someone like you who just wants the basics, save your money and buy a good lower priced receiver. However I should warn you. Be absolutely sure that don't want anymore than just the basics and will be happy with it because if you get the bug to take it further than that which could happen, your low cost receiver and speakers will be a thorn in your side. My brother never got the bug though. He just about had a heart attack spending 150 bucks on a subwoofer.