Help with Connections, choices

[jimf233]

I just ordered DMP-BD35K. I have a Sony SXRX RP TV that is equiped with HDMI though I don't presently use them.
I have a fairly new Yamaha Receiver that is not HDMI capable and handles Doblby Prologic II, DTS, and Neural Sound decoder .
The reason I am not using HDMI between the cable box or the DVD and the TV is that when I do the HDMI protocol determines that the TV has only stereo speakers, and doesn't send over the 5:1 sound. Therefore I use video component from the cable box to the TV, Audio optical from the cable box to the Receiver, Video coax from the DVD to the TV, and Audio Coax from the DVD player to the Receiver.

When I replace the DVD with the Pan DMP-BD35K player what connections and setup choices should I select?

Also since my router is on a different floor, what is the impact on no internet connection?