Originally Posted by WDFan1970
Sure it does. It supports Dolby Digital+ and Dolby True HD.
It just doesn't support DTS-HD MA.
From their WD Website WDTV2 specifications:
File Formats Supported
Video - AVI (Xvid, AVC, MPEG1/2/4), MPG/MPEG, VOB, MKV (h.264, x.264, AVC, MPEG1/2/4, VC-1), TS/TP/M2T (MPEG1/2/4, AVC, VC-1), MP4/MOV (MPEG4, h.264), M2TS, WMV9, FLV (h.264)
Photo - JPEG, GIF, TIF/TIFF, BMP, PNG
Audio - MP3, WAV/PCM/LPCM, WMA, AAC, FLAC, MKA, AIF/AIFF, OGG, Dolby Digital, DTS
Playlist - PLS, M3U, WPL
Subtitle - SRT, ASS, SSA, SUB, SMI
MPEG2 MP@HL up to 1920x1080p24, 1920x1080i30 or 1280x720p60 resolution.
MPEG4.2 ASP@L5 up to 1280x720p30 resolution and no support for global motion compensation.
WMV9/VC-1 MP@HL up to 1280x720p60 or 1920x1080p24 resolution. VC-1 AP@L3 up to 1920x1080i30, 1920x1080p24 or 1280x720p60 resolution.
H.264 BP@L3 up to 720x480p30 or 720x576p25 resolution.
H.264 MP@L4.1 and HP@4.1 up to 1920x1080p24, 1920x1080i30, or 1280x720p60 resolution.
An audio receiver is required for multi-channel surround sound digital output.
Compressed RGB JPEG formats only and progressive JPEG up to 2048x2048.
Single layer TIFF files only.
Uncompressed BMP only.
For details, please refer to the user manual.
Furthermore, as far as I know none of their FW updates have given the WDTV HD sound either.