Noob doubt.. plz help

i have a wdtv live smp which i have connected to a panasonic 42e5 tv. now i want to setup a speaker system and i am tight on a cash. now i know wdtv passes dolb and dts only via hdmi. my question is, if i purchase a dvd home theatre system supporting dolby dts, and connected my tv to this via hdmi [arc], will wdtv pass dolby/dts signals through these speakers?

plz help. i cannot purchase a av reciever right now? or is there any other low cost solution?

I don’t really understand your question.  The WD does send out DTS.  The best arrangement  in your case might be to send the audio out to your home theater receiver through an optical cable, which is cheap.