groucho, Mickoh Ramos,
if your tv doesn't have component in, use the S-Video connection, I'll guarantee that you'll have a much improve video. If you noticed, a composite video connection are just two wires, the composite in, and the ground, whereas the S video connector has several pins (I forgot the names of the individual pins).
If you are familiar with SVHS, it uses S-Video, hence a better picture quality than ordinary VHS (aside of course, from the fact that SVHS is denser than ordinary VHS tapes).
Try hooking up the S-Video, it doesn't cost much (could go as cheap as P80.00), you'll see the difference (but of course, nothing beats the component connection).
Mickoh, just connect your DVD directly to your TV via S-Video, no need to connect it to your receiver tapos TV, magkakaron ka lang ng loss, buti sana if you have several inputs sa TV then its ok to connect them sa receiver for video management, pero kung DVD lang ang input mo just hook it directly.