To Lovinthehd : Manual is silent on this part. Manual only talks about Tuner and HDMI INPUT.
Anyways, GOOD NEWS ..I confirmed with a buddy (very very trusted source). TV Tuner Decoding, USB decoding and streaming decoding ( Exclude Samsung Apps like Hulu or Netflix) pass via same decoder. Apps can be doing their own magic ..so he couldnt comment about Apps part.
in Nutshell, if the content has DD, the SPDIF OUT menu option will allow to select DOLBY..and SPDIF will give DD output.
Great ..Saves me from buying another PLAYER BOX
Thanks a lot guys.