yeah, neither does mine. It's the only option on the menu which doesn't work at all...Well, at least you could test it; a lot of people are still waiting for PAL support. I tried hooking it up to the TV and it worked well, seemed to make contact without problems, but watching an ntsc signal on an old pal tv isn't pleasant at all.
Is there something you're supposed to do to test it besides just plugging it in? Update software(not firmware, have 1.1.0) or something? The "TV-OUT" on my settings menu doesn't do anything.
In the latest firmware there is a program called movie player tv.gpe, you need to use that.
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