Help with connection...what am I doing wrong?

Here is how I have everything hooked up to my Onkyo S790 as of now:

1) Coax from cable jack in wall ---> Cable in on cable box
2) Coax from cable out on cable box ---> Coax on TV
3) Composite video out on TV (yellow ONLY) ---> Video 1 in on receiver (yellow ONLY)
4) Digital coax audio out on cable box ---> Digital coax in on receiver
5) Composite monitor out on receiver (yellow ONLY) ---> Video in on TV (yellow ONLY)

Video 1 digital input is set to Coax on the receiver

Does everything look right? Am I skipping something? When I plug everything in just like this I get no audio. However, when I plug #1-5 in and add the red and white audio jacks from the cable box to the receiver I get sound. But this isn't digital audio is it? Likewise, when I plug #1-5 in and add the red and white audio jacks to Video 2 in on the receiver to Audio out on the TV and change Video 2 digital input to coax, I get audio. But, again, this is not digital audio, is it? Unfortunately, I'm not entirely sure how to tell if I am receiving digital audio. I have double and triple-checked to make sure the cables work and they are securely plugged in.

Am I skipping a step or forgetting something obvious? Is there a setting on one of the component's menu that I need to switch? Please help...I was up WAY too late last night fighting this stupid thing! :-)

I guess I should also mention that I am trying to get digital 5.1 audio for digital cable TV, in case there was any confusion. As I sit here now, I am watching SportsCenter and am hearing certain sounds coming through the side surround sound speakers. What I'm not sure of, however, is whether this is "basic" stereo sound or true digital 5.1. This is on digital cable ESPN, but not ESPN HD.

I think I'm starting to get a better grip on the situation. I'm starting to realize that the digital cable channels (i.e. Channel 100+) are broadcasting in digital surround sound (the DD logo comes on when I go to digital channels). Everything below channel 70, however, does not get the DD logo and yet still I hear some type of surround sound coming out of the side speakers. Is this what they mean by stereo sound simulating surround sound? Or am I just not finding shows that are being broadcast in surround sound? For example, if I plan on watching a Nascar race on ESPN, ABC, or Fox this weekend (my channels 25, 5, and 9 respectively) will I be hearing a digital 5.1 surround sound?

Two more questions and, hopefully, I will get some answers:
1) Is there a way to keep the volumes of the analog channels and the digital channels closer together? Right now to hear analog channels (channels below 70) I have my receiver volume around 40, but when I switch to digital channels (channels about 100) I have to turn it down to around 25 or 30. Is this normal? And, if not, how do I cure it?
2) This is an odd problem. When I watch a History Channel On Demand program, for some peculiar reason, when the show starts it shuts off my receiver. All I have to do is turn the receiver back on to get sound, but why does it shut off? It hasn't done this with any other On Demand programs. When it shuts off, the pop is very startling and History On Demand is something my wife watches A LOT, so I would love to get this fixed.

Discuss... :-)

I actually did exactly this, but I wanted to double-check about one thing. If I plug everything in as listed, do I still have to plug the coax cable from the Cable box out to my TV in? Because when I plug in step 1-4 and unhook the coax I lose my TV signal on the TV. If I do indeed have to keep the coax plugged in, what does the composite video running from cable box to receiver and from receiver into TV do exactly? Does it give me better picture quality or does it only help with the digital audio? Color me confused....