Sorry - I just re-read your post ...
You don't need to connect BOTH the audio out and optical cable. Use the optical only. (Your items a and b)
My previous post assumes you are attempting to convert from S-video to component because you do not have a component out option for your DVD player - if that's what you are trying to do, look at page 56 of your manual. If you do have component out from your DVD player, do not connect the S-video, connect only the component cables.
You must be playing really loud for the receiver to turn off. I can play mine extremely loud and have never had it turn off.
One thing I did find, YAPO didn't do as good a job as I had hoped for - I did a manual setup instead.
Again, hope this helps.
