Randy,
Dish Network has not passed the Dolby digital signal from HBO (except for the HD version)up until last week. HBO didn't even send out a dolby digital signal on any of their non High def channels up until about a month or two ago..
Lip flap is a sync problem... probably mainly because the extra processing for dolby digital put the timing with video at a different point.
I can somewhat deal with sync problem even though either HBO or Dish should get it straight. But the volume difference is pretty bad..
But it is pretty cool to watch movies in dolby digital without buying a pay per view..
Bill