If all you have for audio is that single 3.5mm jack on your laptop then your only choice is analog audio. Analog multichannel would be if you had multiple 3.5mm jacks like most desktop sound cards do, and digital audio would be for computers that have either a coax or optical connector. If you wanted to take advantage of multiple channels then you'll have to get an add-in soundcard for your laptop.
Is the video connector on your laptop actually s-video or one of those multi-format sockets that you use an adapter for that can output multiple video signal types? If it's the former then you don't have a choice - s-video. If it's the latter, then using component would provide the best image quality.