No problem. We'll try to fix you up.

If the DVD player's best output is s-video, then your approach sounds reasonable.

I think that coax and optical digital audio are pretty much equal. Coaxial avoids a signal format change, but optical is immune to electrical interference from poor shielding or inconveniently located power cables. I've gone back and forth and not heard a difference.

As for DVi versus component, in the future DVI will probably be better but today there's not likely to be a difference. DVI in theory is better, and in the future it will likely be true in fact as well, but many cable boxes exhibit varying quality on DVI output - in most good cases today, DVI and component output from an HD cable box are about even (my Pace 550 would fall into this category), but I've heard of folks preferring component on some boxes. I do agree with DollarBill that in most cases the DVI will be better if you have the option. I'm using DVI for my HD cable box and the DVD and Video1 component inputs for DVD player and DVD recorder respectively.