Could use a bit of setup help...

[JSteiner]

Alright, I've searched about 15-20 pages of post history here and have been unable to find my exact question answered. Given that, here goes...

Old system went dead (Infamous input loss problem on the DX575 and I had speaker problems) so I bought an HT-S760 to keep it simple. So I've got the HRT-510 receiver with the component inputs. I finally upgrade my TV so I've got component inputs there too.

Problem is my VCR is ancient and has only composite and my cable box has s-video.

What is the optimal way to hook this up? I wanted to use component switching on the receiver but since only the DVD is component, I gather that won't work. I'm assuming my only option is directly to the TV.

Thus which is better....

Cable -> Cable Box -> VCR -> TV and then audio out from VCR -> Receiver

OR

Cable -> Cable Box -> TV (Via S-Video) & VCR to TV Via Composite or Coaxial? and then sounds from Cable Box and VCR to Receiver?

Or am I just way out there?

The Cable box has audio outs but not sure if it'd be better directly from there, from TV or from VCR, etc...

Some advice would be great. Thanks.

Edit: Was also just considering a new VCR. I assume new ones have component inputs? Or just S-Video? If I bought one...the budget would be $100 or less. Less being preferable.