You've almost got it worked out. Try this:

- Cable line to VCR
- VCR "play" cables to Video 1 in (left and right analog plus composite video)
- Optional VCR "record" cables to Video 1 out (you can't record from the DVD player anyway because of copy protection, so you won't be using that connection currently; left and right analog plus composite video if you do make the connection)
- DVD to 990 (either coaxial or optical digital audio plus component video)
- 990's component video monitor out to TV's component input
- Optional TV audio out to the 990 (left and right analog audio; do this only if you ever find yourself watching cable TV through the TV's tuner while recording something on the VCR, which from your post and the way you've hooked up the cable I'm guessing never happens)
- 990 pre-amp outputs to the 7700's inputs, of course...

I think you could leave off both "optional" connections and never miss them. Once it's all set up, just leave the TV set to the component input and let the 990 do its thing.