Toshiba 40RV525R - PCM Audio only over HDMI?

Had an 37LG50 that was working fine, then I had to go and do the stupid thing and "upgrade" to a Toshiba 40RV525R and bump the 37LG50 to the bedroom.

I have three devices connected to the TV via HDMI: an Xbox 360, a Scientific Atlanta Cable Box and a Samsung Blu-Ray player. I then have the optical out connected to my Samsung audio receiver. When I used the LG television, this passed the Dolby Digital fine. Since changing to the 40rv525r, everything is passed through as only PCM stereo, despite HDMI audio being set to "Digital" and the output type set to Dolby Digital.

My Firmware revision is 1.04, and I am now seeing that the Dolby Digital over HDMI is disabled for "copyright." Even on games from the Xbox 360? This is completely unacceptable, and I would never consider a Toshiba product if I knew this was the case. I am looking at the manual right now and there's a large "Dolby Digital" logo on the cover. This is completely inexcusable when the "Dolby Digital" only applies to the internal tuner. Please tell me there is a solution to this.

Huh...so I had "gotten lucky" with the LG and I didn't even realize it?


Huh? Not sure what this means. My receiver is a Samsung BD/receiver combo, but it has 2 optical inputs and no HDMI inputs. I'm already planning on the "workaround" of using optical direct from the 360 and the cable box to the receiver's 2 inputs, but then I have to change the 360 from HDMI to component since the 360's component plug covers the HDMI port. I'm always afraid of the sync issue as well. Maybe it had something to do with the LG, but the only way I could get things in sync was if I outputted from the TV, since it would be after any delay was introduced.