AVS Special Member
Join Date: May 2006
Location: Ann Arbor, Michigan
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Your situation is really pretty simple. First, you don't really need that coax splitter. Just run the coax directly to the DVDR (DVD recorder,) and then run coax from it to your TV. The DVDR's coax out is just a pass-through, so, you'll maintain a stronger signal that way, w/o a splitter. This will allow your DVDR to tune one channel, while your TV tunes another.
Run the HDMI outs from your DVDR and BluRay player to your AVR.
Run HDMI out from your AVR to your display's HDMI1 input, as you have done.
Run the optical audio out from your display to your AVR's input, as you have done. You will need this to hear the DD audio when you are using the TV's tuner.
I don't see any reason you would need composite from your AVR to your display, that's just crazy. You would need that only if you had a VCR plugged in to your AVR.
This hookup will accomplish all of your goals.
To watch your DVDR, or BluRay player, select HDMI1 on your display. Select whichever you want to watch with the AVR's selector.
To watch something tuned on your display's (TV's) tuner, select TV, and then, to hear it on your AVR, select whatever the optical input you used for your TV is called. If you have an input on your AVR labeled "TV," and it can accept optical audio, use that to connect up your TV's audio.
Note: don't expect as good sound from your TV's tuner as you get from your DVDR, or BluRay player. In fact, if you aren't recording with your DVDR, tune the channel you want to watch with it, and watch with it, not your TV's tuner, and you should get much better audio.
If you ever do get that HD cable box, then, use your splitter to send coax to it, and run its HDMI out to your AVR. You may also want to run S-Video and R/L from the cable box to your AVR, and then S-Video and R/L audio out from your AVR to your DVDR's inputs, to record scrambled channels.