your TV, according to the manual, does not have a composite input. the best connection you can make would be S-video.
I hope, for your sake, the Onkyo manual is easier to read than the on-line version. I had to blow it up to like 200 % to ready anything !!
you should start by moving the s-video cable from the receiver to the TV. You said you had it going from Video 1 out to the TV. It needs to go from Monitor Out to the TV.
your next step is to hook up the six cables from the DVD player to the DVD connections on the back of the reciever. make sure you match the DVD output to the receiver input (ie front left, center, sub, etc). then check the manual for your DVD player to see if there is something in the menu that you have to set to turn the SACD output on. It sounds like the receiver is working, it's just not getting all the signal somehow.
when you want to watch a movie, you need to set the receiver to Video 1 (it sounds like you were doing this part right). when you want to listen to SACD, you need to set the receiver to DVD. the instructions also say to make sure your turn on "Multichannel" using the Audio Sel on the remote or fornt of the unit (page 44 near the bottom right).
let us know if that doesn't work. good luck.