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I'm guessing you clicked on the "Connections" wizard on the onkyo website. They assume that you don't have component video on your TV and you're using the 660 to switch your video sources. Since you're not using the HT660 as a component video switch (it can't do that), just send audio from DVD to the reciever and video from the DVD to the TV.
The receiver doesn't know the difference if you don't route video through it. As a rule of thumb, you should only route video through your reciever if you have multiple sources of the same type(i.e. SVHS player, Sat receiver, digital cable box all might have S-video). If that is the case you will want to hook those into the appropriate input on your receiver and run an S-video cable from the "monitor out" jack on the receiver to the S-video input on your TV.
Also note that with this setup, you will have to adjust the input on your TV depending on what source you are watching. So if you want DVD, set your TV to Compoenent 1, but if you switch to digital cable, you'll have to press the "input" button on your TV remote until it says "Video 1" or whatever input you attached your S-video to.
OK, hope that isn't too confusing. Good luck!
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