There are a couple flaws in the afore mentioned plans. First if you connect the s-video output on your DVD player to the receiver and use the s-vid monitor out that is all you will be able to display. (eg: you have to use all s-vid or all composite)So...if your VCR only has composite output (yellow RCA) you are out of luck because I'm pretty sure the Sony cannot upconvert the composite to s-video. You can buy add on adaptors that will do this but it complicates the wiring and will cost you more money. The other issue is that in order to watch any source the receiver has to be turned on - not a big deal until you have a bout of insomnia and want to watch a movie at 3am. Some receivers have compression "midnight mode" and I think yours is one of them but the dialog is difficult to hear at low volume levels...in this case a direct audio connection to the TV is a benefit- TV speakers sound fine at low volume levels. Anyway good luck - I hope I didn't further confuse the matter.