I was looking for a Sony LCD HDTV when I realized that all Sony HDTVs except for the expensive XBR4 don't have a TOS Link for (optical Output).

So, if I'm only doing HDTV OTA I won't be able to have AC3 (digital 5:1) audio.

What is a good LCD HDTV with a TOS Link?

Which model(s) were you looking at? Even the lower-end Bravia models claim to have a digital audio output. From Sony's website:

Audio Features

Sound Mode : Dynamic, Standard, Custom
MTS Stereo Decoder : Yes
A/V Synch : Off/1/2/3
Dolby® Digital : Yes (AC3 for ATSC)

Digital Audio Output(s) : 1 (Rear)

Your right, I went into the manual on their site and there is an output for digital optical.

The model I was looking at wasvthe KDL46V3000.

When you go to their SonyStyle sight and do a comparison of other 46" TVs and go down to their Inputs/Outputs - TOS Link (Optical Output) they all show 0 except for the XBRs.

Thanks!

Be aware that the optical output is designed for use with the internal digital tuner as you have discussed, but that it cannot usually be used as a "passthough" for other devices connected to the TV. See:

http://www.digitalhome.ca/forum/showthread.php?t=17870 (Bolding)

If the TV has an internal digital tuner (ATSC or QAM), then it will usually have an optical output. If the TV doesn't have an ATSC/QAM tuner, then there is no need for an optical output.