Dolby Digital - or surround sound options - aren't available through Netflix streaming. I called over and spoke to one of the agents who noted that the bandwidth doesn't support enhanced audio modes. So while it's not a bandwidth, there is nothing beyond stereo sound that is being streamed.
Resetting - or holding down the FF>> button will reset the current firmware to the original factory state. It won't roll back firmware. In most cases, I don't recommend rolling back firmware but if you decide to do that, it has to be re-loaded with the prior firmware update via CD or USB thumbdrive.
I apologize that you were told that the audio situation is faulty, but according to Netflix, that's not the conclusion I would draw in this situation.
I contacted support because my unit won't stream Netflix using Dolby Digital - I hear audio fine, but it's not surround.
DVDs and Blueray play Dolby Digital to the receiver via optical cable fine, so I know it's not a physical connection thing. When I connect to Netflix, the signal quality bar gives me full bars (it shows HD quality) so it's not a bandwidth issue.
The tech told me to perform a reset and it didn't work. When I hold down FF for 10 secs, it shows "reset" on the display, but doesn't power off the unit. It only shows the language menu and wipes things like netflix account information - but not things like Pandora information. It also doesn't roll back the firware version - which the tech told me that it would.
I also try to unplug unit, hold the power button for 30 secs, but when I plug in and power on, it loads the main menu, and not a reset menu.
The tech thinks that I have a problem with the unit and wants me to send it back. It just seems strange. I don't have any problems with DVDs, Blueray, Pandora, or YouTube. The only issue is Dolby Digital from Netflix and that fact that I can do a hard reset. I have confirmed that I have the latest firmware.