Audiophiles Assemble!

Ok. I need your help, you geeky tech types out there. This means you, Luke.

I just set up my new surround system and while it is already a vast improvement over my rinky-dink 2-speaker stereo, I have a couple questions.

Mainly this. I currently have the set up like so: Game systems, etc. connected to my multi-selector unit. Selector connected to the TV. TV audio connected to the receiver. Receiver connected to the speakers. Sound waves connected to my ears.

Now, is this an OK set up? Unfortunately the DVD player/receiver doesn't have a video-in component, so I can't just plug the selector into it. I was thinking that I could have the selector video plugged into the TV and plug the audio into the DVD/receiver directly. This would just mean that watching TV or VCR stuff wouldn't use the receiver, but then maybe the sound would be better. I don't know. I'm just guessing.

If my current set-up is ok, that's fine with me. The nice thing is that the TV shows will benefit from the receiver and speakers. If I can get better sound on the stuff plugged into the selector but lose the TV, I'm willing to settle on that. I really want to have good sound for my games and DVD's moreso than the TV proper.

BG&E sounded nice with the surround sound. I'd like to try out something on the X-Box as it has true 5.1 sound. Mmm...

I also need to tweak the settings on the receiver too, but I have to go out later today and pick up some batteries for the remote. I know the system isn't anything special, but for the price it's nice.