>>I'm sorry to tell you that Netflix not having 5.1 won't be related to Insignia firmware, but will have to do to Netflix itself.
That makes sense. From what I read the deal with Dolby Labs is to provide transcoding for 5.1 over the Internet. If that's the case then the audio feed would be handled just like any other Dolby 5.1 disc encode, and decoded by the player's built in audio capabilities when detected.
