What is the difference between normal digital stereo and dolby 5.1 stereo?

Is it really worth the extra 200 bucks to go and get a a/v reciever for my HDTV?

Stereo means 2-channels. But 5.1 surround means 5 channels plus a powered subwoofer. If you just want stereo, get a stereo receiver and two speakers. However, if you want surround sound like you hear when you watch a movie at the theater, you will want a surround sound receiver that processes Dolby Digital and DTS along with 5 speakers and a powered subwoofer. THX is also a plus, but not necessary. See some examples below (Onkyo, Pioneer, and Yamaha are my choices)...

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_ The difference is that the stereo signal only has sound for 2 speakers (left and right). Your terminology of "dolby 5.1 stereo" doesn't sound correct. Do you mean Dolby Digital 5.1? Dolby Digital 5.1 has sound for 5 speakers (left, center, right, left and right surround) and a subwoofer. That is standard these days for watching DVD movies. It is possible to "fake" more sound from the stereo signal, depending on the speaker system you have on the TV, but Dolby Digital 5.1 is the standard for sound in the movies. If you watch DVDs then you should definitely consider it, but you'll also need a 5.1 speaker system too. A whole package (a decent one) to make this thing go starts at about $300...A receiver, 5 speakers and a sub-woofer...Try this Onkyo right here: http://www.circuitcity.com/ssm/onkyo-hom...