You might want to try a better indoor antenna for the test. Most people consider the Zenith Silver Sensor to be one of, if not THE, best indoor antenna for OTA HD reception.
I use it, and it kicks butt, especially for what looks like a cheap piece of plastic and aluminum crap. It can take a while to figure out the best location and position for it. But, once it's set, it's great. Go to
www.antennaweb.org to get a map of your home in relation to your local transmitters.
You should be able to buy it at the same Best Buy/Circuit City/Big Box store you bought the Hughes receiver from. It's $30-40.
If you can't get a decent signal with the SS pointed at stations 8 miles away, there may be something wrong with your receiver. (Try it first with the little cable that comes with the antenna, to rule out a bad cable you may have at home.)