Setting up my first AVR HT arrangement

[Xploration]

Hey guys!
My first post here, so I might as will do an introduction.
Im a student pursuing EE and have always been an audionerd, however in the car audio scene.
Well with being at a university my car listening time is greatly reduced and I am getting into Home audio.
My friend turned me on to a craigslist post for a M&K v-76 subwoofer for $50.
I did my research and its roughly 10 years old bust still very good.
I emailed, and promptly agreed to go buy it.
So an 80 mile trip from Milwaukee to Northern Illinois took place.
Upon getting there I see everything is in pristine condition. Everything professionally installed and gain at -6, very little usage, and all paperwork.
Then they offered me an Integra dtr 5.4, panamax 5100 surge line, and an ENTIRE box of High line monster coaxial, rca, and optical cables. How much? $75.
So here i am with a bunch of new gear and a lot of learning.

Current system:
TV: Samsung UN48H6350 Smart
Surge: Panamax 5100
- Unrestricted line to subwoofer
- restricted switched line to receiver
- restricted switched line to TV
Receiver: Integra DTR 5.4
Towers: N/A
Bookshelfs: N/A
Center: Not needed

Questions:
Im having issues working my On screen Display to my TV from Receiver.
I have Components from the Receiver output to the TV input and nothing appears.
Then I tried 1 cable from S video out to the Video in on the tv, nothing.
HOWEVER when i tried the Red and Blue component with the S video, the OSD works, kind of.
The menu is pretty strange. The background is this gray pixelation but the menus do work.
almost like an old Input selection on a tube TV. I attached a diagram to explain.

Reccomend me some towers or bookshelfs?
Currently looking at a pair of paradigm monitor v6
KEF C95
NHT VT1.2

I do want some impact/dynamic sound. I listen to music with some punch at times. But i know how to appreciate a transient warm sound.

 

[tmurnin]

did you see the unit working with video before you bought it? If not, I'd take it to a local a/v store and see if they can test the video inputs/outputs for you. The setup you're describing doesn't make much sense unless something's fried in the electronics.
What is your budget for speakers? Are these only for 2 channel music or do you plan on watching movies as well?

 

[Xploration]

unfortunately I didnt. and to be honest I should have, but they were an old couple and very trust worthy. I just find it weird I have to run an S video out with 2 components to get the OSD to work, but the 3 components dont. I may try on another TV and see.
My budget is 300 for a pair. At this point I plan on doing only 2 channel music.

 

[Xploration]

UPDATE. tested further.
When i only plug S video into the Gren component nothing appears. When i plug in the red and the blue, but leave them unconnected picture appears. this is my current OSD, which is clearly wrong.

 

[dieve3]

As far as speakers are concerned, if you can find any
Paradigm monitor series at your price point,they will serve you well. Great bang for the buck.