Well honestly if you want the 'purest' video signal you want to run it directly to the display, and skip over the receiver connection. For example, I'm looking at getting a Pioneer Elite Plasma TV. I'm not going with the PRO-FHD1 or anything of that caliber just the Pro-940HD, and I plan on running my DVD player component outs directly to the TV. Also, I don't necessarily see much use with going to the HDMI unless you "HAVE" to have the audio and video together or are running 1080p. People will say "It's Digital to Digital so it's cleaner and better" well, sometimes digital to digital conversions are much more difficult than analog ones. Also, data gets transferred in slight analog distortion, but if a big gets dropped it could be rather noticeable. 1080p I believe will only run on HDMI (or I'm pretty sure DVI if you run the conversion plug from HDMI to DVI if that's what you display has, but I'm sure you Sony has HDMI) so if you did get a Blue Ray or HD-DVD player you would need to use the HDMI, but if I personally was running 1080p/i I would run directly to the display.
So, basically the best way to do a setup in the range is Video directly to the display (for maximum signal integrity) and run analog outs for music (CD’s, DVD-Audio, SACD *6 channels) and run Digital Coax for the audio. Played around with it in all different configurations, and this, in my opinion is the best way to do it. If you want to know why I do something a particular way ask… I’ll tell you…