So I just received the 1050 and it looks great and sounds awesome. I am just a bit confused on my setup. Let me break down what I have and if someone could tell me the best way to hook it up, cool. I am kind of beginner so bear with me...thanks in advance!
Gear:
Outlaw 1050
Sony Flat screen 32"
Panasonic DVD/CD player
Toslink optical cable
S-video cable
2 floor speakers (more coming)

How I have it now is as follows:
The part that confuses me is the connection, obviously I want the best sound and picture the system can offer.

I have the Toslink optical cable connecting from the audio optical input of the dvd player to the 1050.

I have the S-video cable going from the dvd player to the 1050

I have the red/yellow/white cable going from the dvd to the tv.
Now my thought is that the S-video should be connecting the DVD to the TV directly...is this correct? Or is it good through the receiver and I just need another cord to go from receiver to TV? The thing is, I didn't think I needed to use the red, white, yellow cord that came with the dvd player?
Also, when I play a dvd, I have to put the volume on the 1050 at 50 something in order for good sound, this seems high, am I doing something wrong here as well? Thanks so much for any help here OUTLAWS!