Dolby Digital Settings

With my system, if Dolby Digital is set to "On" in settings, I don't get any sound at all from Rented or Purchased movies from iTunes - however, I do get sound from Netflix, Youtube, iTunes music, etc.
Sound works in iTunes material if Dolby Digital is set to "Off" or "Auto."
I'm worried, however, that if a Movie is Streaming with Dolby Digital, the sound should be working when the Audio Setting is "On."  Am I just getting stereo audio if the Dolby Digital setting is "Auto?"
Currently I am only running the HDMI Cable to the TV - no Optical Audio out or anything.
John

I think it's probably similar to my issue here:
https://discussions.apple.com/message/17926593#17926593
Rentals generally have either 1 or 2 audio tracks.
The first is stereo (occasionally mono), the second is the dolby digital surround.
I connect to the TV via HDMI and to the surround processor via optical.
In the past I'm sure I've managed to have sound from the TV (HDMI) or surround processor (optical Dolby Digital simultaneously).
I think what currently happens is this:
AppleTV 'talks' to the HDMI device and ascertains what it can support.  Most TVs will not be able to decode Dolby Digital over HDMI.  Receivers/amps with DD capability will.
So when the TV is connected via HDMI, and DD is set to off or Auto the TV gets the stereo feed (Auto selecting stereo as TV can't handle DD).
If however DD is set to On this forces DD through HDMI but the TV doesn't know what to do with it.
So in my situation I can either have it set for stereo audio over HDMI (Off or Auto) and optical, or DD over both (DD set to On.
Clearly I want the stereo track to go to the TV over HDMI and DD over optical (falling back to stereo if no DD track) so I don't have to fiddle in Settings each time I choose to listen through TV vs surround system.
AC

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