Just got a new LCD tv for the bedroom, it's 7 months old but owned by a buddy of mine. Here is the problem which I have never seen before.

I have the HD box hooked up with Component and I decided to hook up the PS2 via S-Video. When I switch inputs to S-video, I can get the video playing but the sound is coming from the cable. Example, I was playing Final Fantasy VII but Family Guy was coming out of the speakers. I tried plugging the Red/White cables in every outlet but no sound. Also, if the PS2 is turned off, no sound will be coming out either, only when the PS2 turns on is when Family Guy starts blaring out of the speakers.

Any ideas? I tried messing with the settings but that didn't help.

It sounds like there's a setting in the TV that lets you listen to sound from another input at the same time you have the s-video selected. This apparently only kicks in when there is an active video signal. You'll want to connect the red and white cables to whatever sound input is associated with the s-video input. Perhaps the TV works like some receivers and allows you to assign video and audio inputs separately, so you have to pair up both the video and audio from the PS2.

Do you know the model of the TV?

I tried looking around in the settings but didn't see anything as such.

The tv is a 26" Insignia nslcd26f, I believe is the model number