Hmm, first a JohnK, then Kjohn, and now a Johng.
You guys are starting to confuse me.
But back to the issues. That's a nice system you have going there. Essentially the same speaker set as my own although i returned the M22s in favour of the M60s. Considering that you have a good large sub and that your M22s are not full towers, i would recommend you set your speakers to "small".
As for the crossover, most people seem to find an acceptable range between 70Hz and 90Hz when using this setup (chek my other posts or search for a subwoofer crossover poll and you will see the results people here have reported). A post i made just yesterday also has a link to speaker setup according to Sound and Vision magazine online. Alan also recently posted a mention on proper subwoofer setup.
As for the tv sound, i'm assuming you don't have a vcr since it wasn't mentioned. In that case, connect your audio out from your tv into an audio in on your receiver to play sound through your system. With a vcr, hook up your tv audio out to the audio in on your vcr and connect the audio out on your vcr to an audio in channel on your receiver. This way when you turn your vcr on, you can listen to sound through your system for tv or for vcr movies.
Most receiver manuals should help you with these connections and if it is not clear, head over to the Denon or Onkyo websites and nab an online manual for some of their latest receivers.
DVD under $500 Cdn?
Again, i posted a review of 2 dvd players alongside a denon cd player not long ago. Do a quick search for Hitachi and Panasonic on the forums and it should pop up, if you're interested.
