Your TV is responding as if the Game button was pressed on the original remote. The additional stuff on the screen is to let you set the best brightness and other settings for video gaming. These screens should disappear on their own in 10 seconds if no buttons are pressed on the remote. See the manual http://www.symphonic.us/support/manuals.aspx
and fill in the model number. If the remote were still controlling the TV, the CH up and down buttons would let you choose the Picture settings to change and volume up and down buttons would change the setting.
The TV/VCR button on the universal remote may be swapping the remote to control the VCR only. (Thus losing the ability to control the TV.) (What does the manual say about the button for the universal remote?) You may want to consider a different universal remote - programmable or http://www.remotes.com/remotes/servlet/rs?a=Search&o=c&uid=0&m=ST419E&uuid=12844254442790
which has an exact substitute.
Check your cables for the sound issue (try new ones) and make sure that they are fully seated in the jacks.
I hope this helps.