Originally Posted by GregLee
I'm not sure what you mean -- what diagram? (You can program the 1020 remote to control TV volume.) Is the optical cable you're referring to connected to the TV? That is probably an output from the TV for a signal from the TV tuner; its volume wouldn't be controlled by the TV.
No. Front height and back surround speakers can't produce sound simultaneously.
This is from page 23 in the manual (diagram not included):
Connecting your TV and playback components
Connecting using HDMI
If you have an HDMI or DVI (with HDCP) equipped component (BD: Blu-ray disc player, etc.), you
can connect it to this receiver using a commercially available HDMI cable.
If the TV and playback components support the Control with HDMI feature, the convenient
Control with HDMI functions can be used (see Control with HDMI function on page 62).
For input components, connections other
than HDMI connections are also possible
(see Connecting your DVD player with no
HDMI output on page 25). If you want to listen to the sound of the TV
over the receiver, connect the receiver and
TV with audio cables
In the diagram with HDMI connection it tells you to choose between component cables or an optical cable for this setup.