Hey, Mike.
I would like to know the best way to hook this up to my Dish box (VIP222 HDTV / DVR) and Panny TH-50PX6U plasma t.v. for Surround sound capability.
If you don't want to use HDMI, then I suggest connecting the optical digital audio output on the VIP222 to the Marantz for surround sound.
According to my research the quality is good with component as well?
I'm still uncertain if component video connections can transfer 1080p or not. Some sources say yes, some say no. There's really no better test than for you to hook it up using the component video connections and decide if you think that the quality is acceptable.
Are some component cables better that others?
Sure, but I think buying the ones from Monoprice.com for about $5-$10 would be just fine (or something equivalent). You certainly don't need to buy the $80 ones from Best Buy.
I have existing 16 guage speaker wire in place that I was going to use. Is it better to use banana plugs or can I just go bare wire between the receiver and speakers? The guy at the store said bare wire is best unless you are changing things up a lot.
Banana plugs are mostly for convenience. The plugs will add an additional resistance, but if you put on the plugs correctly, that resistance will be negligible. I use banana plugs because it makes connecting and disconnecting a lot easier, especially if the receiver is in an entertainment center. Bare wire is perfectly fine - just be sure that you don't have any stray copper strands making a connection between the two binding posts because that will cause a short circuit.
As for the 16-gauge wire, I suggest checking out the webpage linked
here to check out the table for speaker gauge selection. With your speakers, you're set unless you're running over 48 feet of wire (and you want to keep your wire effects at the level specified on that linked site). I put up the link for future reference, mostly.
