What is the best way to connect these audio components?

I just bought an intro home theater system. It includes an LG 32" LCD HDTV with HDMI, a Yamaha HTR-5840 6.1 surround receiver, two Klipsch Synergy F-1 speakers, and a Sony DVP-NS70H DVD/CD player with HDMI. (In a few weeks I will be completing the system with Klipsch sub, center, and surround speakers.)

In order to get the BEST quality out of this combination, how should I connect everything? All my cables and wiring are top of the line Monster cables.

I currently have the HDMI from the TV to the DVD directly since the receiver doesn't do HDMI. I then have a coax from the DVD to the receiver, and a fiber from the TV to the receiver.

1. Is this going to give me the best possible sound for what I have right now, or should I reconfigure it a bit?

2. Is fiber or coax better?

3. When I turn on my DVD and receiver to play a CD, I also have to turn on the TV. When I turn on the TV though, it doesn't see the DVD player until I force the menu to choose HDMI as a primary output. Is there any way to make the DVD visible to the TV by default?

Thanks,
Francesco