You should run the Svideo to the 1050 from the DVD player, then run another Svideo from the 1050 to the TV. You do not need to connect the yellow composite lead, or the red and white audio leads to the TV. You might want to run the red and white audio leads from the OUTPUT of the TV to the INPUT of the 1050, so you can listen to TV broadcasts through your 1050.
You can run your Svideo direct to the TV, bypassing the 1050, but you will get no on-screen-display, which means you only have the front panel display for all your setup options.
As far as the volume goes, are you talking +50, or -50. Almost all new recievers/processors display volume on a DB scale, with negative numbers up to 0, then positive numbers. When properly calibrated with a sound level meter, 0 is approx THX reference level, or basically the sound level that sound tracks are mixed for. Yes I know the 1050 is not THX, but this is the basic idea.