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Wait.... you want to put the receiver before the TV, correct? Then all you need is HDMI from the box to the receiver (and of course HDMI from receiver to TV) Sadly I will confess that I rarely use HDMI even though I have it for all relevant devices. The PQ with Component Video beats it by a Scotch mile. So if 'twas me, would need two sets of component video and a nice high quality coax cable. Coax is supposed to be better than TOSlink but I seriously doubt that you will notice a difference. As to receiving the TV into the receiver just get some audio cables and loop them back to a different input of the receiver. Probably not digital unless your TV has digital out. In this case you'll need one more digi cable for that direction.

You got it in one. The difference between 1a/b and 2 is that 2 is NOT from the receiver TO the TV. Actually now I think about it there's probably a setting to let the receiver use the TV's speakers (via HDMI), but you'll never get surround sound.

I don't think you are going to get sound going FROM the TV to the receiver via HDMI. 1. You can get some RCA phono cable and make a normal analog input and select that when you want to watch TV. 2. You can get an optical cable (or coax if the DH700 does that) and assign a digital input to be connected when you press TV on the receiver. At least (1) that's what I would do on my Onkyo receiver. I did it because my family sometimes get lazy and doesn't want to figure out how to make the cable box work. My TV doesn't have digital out, it's way too old. If the video signal were coming from something else and going via the receiver to the TV as a video signal (whether HDMI or something else) then your sound would go to the speakers (since they are connected to the receiver?). But if your only source of picture is the RF in to the TV, this second arrangement (which I use) wouldn't work.