My neighbor purchased a flat TV. She has no cable nor satellite.

I guess she gets local channels?? I don't know it it's a plasma or LCD she just watches local channels.

I have a digital TV. So is the flat TV digital, and maybe she has the capacity to accept HD if she was hook up to cable or sattilite?

my neighbor purchased a flat tv. she has no cable nor satellite.

I guess she gets local channels??? I don't know it its a plasma or LCD
Can you please be more clear : what is your question ?
You can do more with a flatscreen TV than just watching television channels.
There are video recorders, CD and DVD players, interface with computer, use it for display of photo's, etc.
If it is so essential for you to know why your neighbour has a flatscreen TV, why don't you ask her where she is using it for ? You are allowed to talk with your neighbours, as far as I know... :)

Ciao !