The single connection is no problem. I route all sources into the receiver first, then send a single S-Vid connection out from the reciever to the TV monitor.
So I would just drop the converter between the receiver and TV.
But now I'm concerned with your remark about signal quality. Here's a description of the box in question:
RGB/YUV VIDEO STANDARD CONVERTOR A handy gadget that can convert composite to s-video (both ways) and either to colour difference YUV or RGB signals. All commonly used connections and switches are on the front panel making for a easy "rack" type installation. Great for connecting DVDs and other video sources to video projectors and large screen TV's with component or RGB inputs. Technical spec: Video inputs: 2 x composite (RCA), 2 x 4 pin s-video Video outputs: 2 x composite (RCA), one composite/Horizontal sync, one vertical sync, 2 x s-video1 x YUV or 1 x RGBHV (switchable) Audio inputs: 4 x stereo pairs RCA phono; Audio outputs: 3 x stereo pairs RCA phono Power supply 15v DC 450mA (UK adaptor included); Dimensions 370(W) x 75(D) 50(H) mm Order Code [CMT7] £199.99
For 200 British pounds, I expect more than just a widget to plug an S-Video cable into an RGB SCART socket. My understanding was that this device will actually upgrade the quality of the signal, not just change the format / standard.
Since I can already set the SCART socket to accept an S-Video signal, the only reason to buy this box would be if I can use it to upgrade the signal quality! I guess I'd better go back to the vendor for more details... :(