Modern TV's are not fitted with Audio out sockets these days. You will probably see with those two red and white jacks are some other jacks. These together are used to connect to either a DVD, Camcorder, or projector. Therefore are useless as sound out! The only way you can get audio out, to an amp not having a digital connection, is to use are scart plug that has RCA cables coming out of it. Assuming the TV has a scart socket.
It seems that it either has a problem in the power supply section or more likely the protection circuit. Unless you are experienced with repairs to hi-fi, I suggest you take it to your nearest dealer. It's not any fuse I can tell you that. You either have power or you don't with fuses!
PCM 2 is basically normal stereo sound. If you want to use Dolby settings it has to be set to bit-stream, or Dolby.
However that is in the amp settings. And if it is switching off before you can change it, then it's likely that the protection circuit is sensing an overload caused most likely by either bad speaker wiring, or a bad speaker, or faulty connections. For example two speakers connected to the same channel.
You cannot change the region on the player. If you want to play a region 1 disc, you'll have to use a computer and hook it up to your TV (you can change the region on optical drives a limited amount of times on computers), or acquire a region 1 player.
If you're savvy enough, you could rip (using a computer) the disk into a compressed format the LG system can read (MKV, MP4, etc.) and play it off a USB stick.