New to the Home Theatre (Looking for Help)

[Rusted]

Well, the title kinda' says the basics. While I am versed in the mechanics and components of home theatre, I am a little uncertain which types of connections I should be making to achieve the best performance.

Gear:
42" Philips LCD 1080p (42PFL7422D)
Harman/Kardon AVR-247
Harman/Kardon DVD-38
HDTV/DVR cable box (not yet delivered, but will have an HDMI output)

I am planning on running HDMI cable from both the dvd player and cable box to the receiver, then from the receiver to the TV.

By doing this, does the receiver have to be on in order to get picture? Or will power always be running out of the receiver (standby) to where the Simplay-HD of the Harman will still pass the signal to the monitor? I guess what I'm getting at is that I want to have the option of using the receiver for sound, but always want the HD connection.

If this is not an option, what are my other alternatives? HDMI to TV, Coaxial Digital Out, Optical?

Also, I am new to HDMI and am unsure how to find what type of HDMI my receiver is. I've checked the manual and nothing. Are cables downwards compatible? Or might someone already know?

Please help.