lets see
sound coming from the remote
sound is all the way up on the TV,
have tried different media devices
Tried powering off (unplug it) and back on again but no joy
there was a loud crackle and the sound went off
Checked TV using PS2
the tv works.
the ps2 works (assuming using same ports?)
the audio in the wiimote works.
so, the sound for the wiimote would come from the same sound processor as the sound for the TV. therefore, its not that. The tvs plugs work, the tvs speakers work,
there was a loud crakcle (indicating burning out?)
have you inspected the cables for any sign of burning, melting, smell?
if something in the wii went, i would be astonished that it would ONLY kill the stereo sound.
only thing that seems logical is a bad wire.
take it back, ask to try it with a different cable.
just b/c you dont think its a cable, doesnt mean it isnt.