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Hello,
There are three video connections.
Composite: These are your standard RCA cables. Red & White for audio and yellow for video.
S-Video Is a single black pin-connector cable. The picture quality is usually noticably improved over composite cables.
Componenet Video: Is the highest quality video cable available today. You may or may not notice a big difference over S-Video if your using an analog TV. Although the bigger the TV, the more improvment might be noticed. If you have an HDTV, component cables are a must really, especially when using a progressive scan DVD player or playing a video game that uses progressive scan technology. The difference is worth it.
As for connectiong to the receiver...
It's best to go straight from your video equipment (DVD, VHS, LD, etc) to the back of the TV for the best connection. Generally speaking...
However, most peolpe's TVs don't have enough connections to hook up everything directly. So going through the receiver is a good bet. And you would hook it up exactly as you said. DVD to a componenet video or S-Video Input and then you would take another cable, from, we'll say component video monitor out to the componenet video input on your TV.
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