unless you have a hi def DTV RX, you won't have HDMI.

if all the sat RX and the surround system both support optical, go that route. you wire the optical cable from teh RX to the surround for your audio, and component/s-video to the TV.

if the directv RX does not support optical, then option A will be your only choice. again, audio to the surround and video only to the tv.

does the DVD surround have a video IN, if so then feed all video to it then out to the TV. if not, then you will need 2 connections on the TV so you can feed Sat on Video 1, and DVD on Video 2.

Thanks davidandkasies...
No, there is no video IN on the DVD surround. Let me see if I'm getting this stragth. I plug the sat RX via component to the tv (the 3 cables). Then I plug the DVD to the tv using HDMI and optical sound cable. Is it better to use HDMI than component to wire the TV to the DVD surround?
Then, it is just a matter of using Video 1 or Video 2!!!

osprey