As Church Av Guy said, it is overall a poor machine. They tend to fail a lot with error codes that won't go away, even freshly refurbished machines.
I haven't had mine hooked up for awhile, and it's possible you just are not starting the dubbing process correctly, but I believe one flaw of the machine had to do with these dubbing issues.
Yes, the Polaroid is not stereo, and one problem when using it to record from TV channels is the audio was very faint unless you cranked volume up to the max. Various issues could be fixed via a factory refurbish, but that often failed and you were left with an error code on boot after which the machine was non respondant. One Ebay seller told me every refurbished machine he sold came back.
I use mine for the component inputs, which will pass HD and strip CP, even with the machine off (on certain models). Of course anything recorded to the HDD or DVD will be SD. Image quality through the component ins was unrivaled in terms of color saturation, contrast, and sharpness, but good luck getting a well behaved machine. I hook mine up to an Oppo BDP-95 universal BR/DVD player, the last Oppo which was equipped with component outs and will pass HD