I think the virtual dolby is something that only works through the TV and can't be output... although if your amp has Pro-logic 2 and DD that shouldn't really matter. that's only a guess though as I haven't seen mine yet.
You are correct. Virtual Dolby is the technology Sony use to create a Dolby Pro Logic effect thru stereo speakers. However, by conecting the TV via its stereo phono outputs to an Amp with a pro logic decoder, you will obtain True Dolby Pro Logic. Only if a pro logic programme is being broad cast or you are watching a prologic video or DVD tho!
I don't know how affective the virtual dolby is at producing a surround effect... but the LS35 output through a Hi-fi should sound fine... although you won't get the virtual dolby effect (with either set) if you do this. As far as I can see the only reason to go for the LS60 over the LS35 is if you want 100hz picture which I am not bothered about.
I'm wondering if I'll miss the Virtual Dolby if I use hifi stereo.
You're right about the 100Hz difference - however from your previous reply it sounds as if you have a sourround sound setup so the sound will be the same for you whichever set you went for. For me I have to weigh up much improved stereo sound versus the loss of the Virtual Dolby effect.
It would be an easier decision if I had an extra 500 quid say to buy an AV amp/speakers and could be bothered to wire up the room.
from the sounds of it you wouldn't want to move your stereo speakers to the left and right positions either side of the TV? In that case spend the extra and get the LS60 as there's no point having stereo coming through your hifi if it's on the other side of the room.
Be aware that if your hi-fi speakers aren't magnetically shielded and you did move them close to the telly it would have some nasty effects on your picture.
It does sound as though the LS60 is the one for you in this case.