Thanks. I guess we can try a different antenna. We've tried this
http://www.target.com/p/GE-HDTV-Quan...1/-/A-10880564 and something kind of like this:
http://www.amazon.com/General-Electr...5161366&sr=1-7
Everything else seems in line with what you suggest. the house is wood with vinyl siding. i've tried pointing the antenna. and i think the tv is set to its regular tuner (not cable, not hd). but i'll dig out the manual and make sure.