Preferential Quality Connections in order of higher quality are: 1st>HDMI, 2nd>DVI, 3rd>Component/S-Video, 4th>Composite Video. Make sure you only use the surround setting on 1 of the 2 components, which ever is of better quality. If you use them both it WILL sound like mud. (older receiver-newer tv>probably tv) but you must connect all tv audio channel outputs to receiver. (newer receiver-older tv>receiver would be better)
Receivers also tend to have more wattage to drive larger speaker loads than most TVs. The key is to turn off the surround and SRS functions on the TV if you use the surround decoders on the receiver. Either way you use it, make sure you use the set-up feature to balance the outputs of the various channels for either source (the levels of the two will probably be very different).
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