Philips 42inch LCD flat screen tv

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since you didn't include the model number I will just guess that you have no sound because you don't have it hooked to cable right now. As far as the picture goes, It's likely that either the power supply driving the sustain boards is faulty or one or more of the sustain boards is bad.

try hitting the mode button

check the sound set up menu first if set to off. if ok check the speaker weather is worn out.

check your connections very well or change your cable

CHARTER BOX
3 CABLES
YELLOW - VIDEO
RED - R. AUDIO CHANNEL
WHITE - LEFT AUDIO CHANNEL

Hook them up to tv's INPUT of the same colors

Then turn tv to input or av channel.

Yes you will get a better picture quality out of a cable box if you get an HD cable box.
The reason you are getting the diminished picture is due to the signal you are feeding the TV is an analog signal. The newer HD TV's are made for digital TV and this older technology shows all its flaws on this type of TV.

When you get the new box understand that the same channels you are getting plugged directly into the tv are still going to have some grainy look to them but the good thing is that a lot of them are starting to be rebroadcast on HD channels and that is where your new toy will truly shine.

Enjoy your new TV...

Good Luck...

In your philips menu there is an option to turn of your auto aspec ratio to OFF then using your sky remote go to services, 4 then picture and ensure that this is set to 16:9

Job done

Cheers
Little Dish Fitter

most programs don't have the 5.1 so you won't hear it

It sounds like it's the inverter panel which lites the lcd back light.
If it's under warranty, try to replace it, or take it in for svc.