TV goes yellow and starts flickering when content switches from Dolby to stereo sound

Yes Toslink Optical SPDIF goes by several names is the only way to get Dolby 5.1 out of the 360. The red and white are purely stereo and the 360 puts out the audio calibrated for coming out of stereo speakers on a TV and won't sound exactly right through
headphones. If your sound system can handle Dolby 5.1 and can do Dolby Pro Logic down mixing then your all set and any old headphones will have fairly accurate simulated surround sound.

It seems that either the sound bar does not have a Dolby Digital decoder, or that the TV does not pass the Dolby Digital signal through. When the Xbox 360 boots up, it outputs in 2-channel stereo until it starts the dashboard and reads the system settings.

A workaround is to set the audio output settings on the Xbox 360 to "Digital Stereo". This should make the sound work.

What model is the sound bar and which model Xbox 360 do you have (traditional or Xbox 360 S)?

I'm still waiting for Microsoft to fix the problem as well.

Putting it very simply for them to understand. Netflix was working brilliantly until the November update and now it's rubbish. To expand on this.

1. Before the November update. I had the audio option set to bitstream and ticked the audio passthrough checkbox.

The sound is passing into my TV and I have an optical output to a DSP-A5 amplifier. With the xbox being used for games the amp displays ProLogic for normal stereo output.

The Netflix app can be started and when you list the sound options for films you are given English and English 5.1.

When you choose English, the sound is stereo and the amplifier displays ProLogic.

When you choose English 5.1, it's surround sound and the amplifier displays Dolby Digital.

The movies and tv app works really good with this as well.

2. Microsoft released the update to 'improve the users experience'.

The bitstream option has disappeared from the audio options. I can see Stereo Uncompressed, Dolby Digital and DTS Surround.

Now, when I choose each of these options the amplifier picks this up and displays accordingly ProLogic, Dolby Digital and DTS Surround Sound.

This is where it all goes wrong.

Leaving the sound as Stereo on the xbox. I start Netflix and when I choose a movie the only option is English. English 5.1 is no longer available.

When the sound is set to Dolby Digital on the xbox. I start Netflix and the movies now give me English and English 5.1. But... the amplifies remains on Dolby Digital irrespective of choosing English or English 5.1.

When the sound is now set to DTS on the xbox. I start Netflix and the movies gives me the same English and English 5.1 choices. but.. the amplifier displays DTS Surround Sound irrespective of choosing English or English 5.1. The English 5.1 is being converted from Dolby Digital to DTS by the xbox!

3. the ONLY device which has changed is the xbox with the software update.

The TV is an older LG 55EC930V which has always been up to date on the firmware. The amplifier has no firmware to update.

Ticking and unticking the audio passthrough does bugger all.

the DSS doesn't convert stereo. The DSS has dolby tech in it, produces dolby digital and dolby pro-logic IIz. I got dolby digital on my tv and they sound the same.

Dumb question but, have you tried switching to Stereo Uncompressed in the settings. It's really annoying but that's the only trick I know that works for me. Most of the time none of the Dolby options work. I also notice that when Dolby for Home Theater works, the audio delay is a full few seconds for voice (essentially making the content unwatchable).

Yes and as a matter of fact, I've had it set on Stereo Uncompressed since I purchased the xbox. While my TV supports Dolby, I haven't enabled it, because, in my opinion, surround sound does not sound good coming from stereo speakers. And on that note, I've tried various sound & video configurations since the original purchase. Only recently, seemingly around the time of the last update, has this sound issue arose. At first, I thought it was a fluke. Something a quick console reboot should solve. But sadly, it's become a regular event...almost to the point that I expect it when I turn the console on.

And to be clear...most of the time, I'll boot the console up and there's no sound coming from the dashboard/store. Other times, I'll boot it up and there is sound on the dashboard, but not within the game.