More generically: Most A/V receivers of any quality (keyword: quality!) don't have built in VCR's, television tuners, or DVD players. What they do is allow you to hook video & audio up from VCRs, DVD players, cable boxes, etc. and pass the video signal on to your TV.
Typical receiver connections & devices:
1. Component - this is the best 'typical' connection on the back of receivers and is found on many new televisions these days. It has a red, green, and blue RCA type connection which will have a match on the back of equipment that has component output. Common equipment with component connections include DVD players and high definition capable cable boxes and satellite boxes. You can also get component cables for video game systems. Most people have at least 2 pieces of equipment with component output.
2. S-Video - This is the middle of the road connection, not great, not bad. Not many devices have S-video output, but a few do. Good VHS VCRs have it and it is very likely that if you have a camcorder it also has an S-Video connection on it. It uses a round 4-pin connector to supply video.
3. Composite - No question that composite is the most common type of video connection out there, but it also is becoming more and more rarely used as the conversion to HDTV takes over. The quality of a composite connection can't carry HD signals (neither can the S-Video connection!) so if you have an HDTV you need at least a component connection (or better). Composite is still good to hook up your VCR & camcorder to the TV. Baby monitors & security cameras have composite, and usually, if the receiver has 'zone 2' output, it will only do this through composite. The composite connection is a single RCA jack (yellow) on the back of the receiver and keeps things simple and less expensive by only needing that single composite cable.
That may not clarify how you should hook all your stuff up, but I would at least look over the book again and look at your VCR, DVD player, and Cable box and see what type of outputs are on the back. Video is the only thing that I discussed above, but there is also audio to consider (several flavors of that as well). A good receiver, good speakers, and proper setup of your gear to it all can drastically improve the quality of your home viewing experieince.
