Yamaha 5740 + Satellite + upcovert composite to Svideo

HI. I'm just getting my first Home Theater together and a have a question

Here's my rig, as soon as they start arriving.

Toshiba 51H84, just waiting for it to be released and then delivered

Yamaha HTR-5740 w/NS-P436 Speakers, probably will arrive tomorrow.

Toshiba SD-3860 DVD progressive scan

Bell Express Vu

My Bell Express Vu Sat Receiver only has compsite/coax/svideo outputs for video.

Right now I'm using the best it has which is svideo. When my new parts arrive I was hoping to hook the sat receiver up to the Yamaha receiver with the svideo and then out to the hdtv through the component out, (I don't know if that's even possible), but the receiver has no svideo inputs or outputs. It does do composite to svideo upconverting though. What does this do? Does it take the lesser quality of composite and then convert it up to svideo quality and then what happens since it can't go out through an svideo plug? Will it go out through the component connections? And if it does try to convert composite to svideo doesn't the Garbage in Garbage out rule, rule out any real quality increase? Of course I can always just hook the sat receiver to the hdtv with svideo but I had hoped to use the switching ability of the receiver to control all components I'll be adding like the xbox and maybe a htpc setup, dvd, cd etc.

Thanks