Your right, appears that way. No Dolby digital on netflix on Apple TV

[Link: discussions.apple.com]

Wouldn't you know it, this is is the same client that dad all the HDMI issues with the NEC tv.

10 hours troubleshooting with that, 2 1/2 hour more with DD and Apple TV issues.
( have to wait for Apple TV update I guess)

Arrrrrrrrgggggggggg............