I am sorry but i am a complete idiot when it comes to this kinda stuff so bare with me please. I have done some reading and have just confused myself more.
My setup:
Samsung plasma
Time Warner STB
Receiver (Not sure what brand off the top of my head, it's 7yrs old but is DD and DTS I believe) connected to 5.1 surround speakers
Playstation for DVD's and gaming
Just want to get everything connected so I can listen to the television through my system in surround sound. Can you point me in the direction of a visual diagram as to how to connect everything for the best possible sound? Any advise would also be greatly appreciated as how to get everything connected. Thanks! :confused:

The TV's manual usually has connection diagrams/examples.

Other than that, you can run red/white analog audio cables from the the TV's audio outputs to the receiver for Dolby Pro-Logic.
or... you can run and optical or digital coax from the TWC cable box for DD/DTS to the receiver.

Optical or digital would give the best performance.....correct? Any benefit as to one or the other?

No ... either accomplishes the same task. No difference in audible sound quality in most applications.
DD/DTS provides the best surround sound over DPL.