This is old but I just stumbled upon this in a search since I got my 1020. I had the same problem, I wanted to listen to music (ipod) and watch TV at the same time for things where you dont really need the sound (sports). All I did was use a component cable to go from my cable box directly to my TV. I still have an hdmi coming from my cable box to my receiver. You switch to the correct source on the receiver for the music, and then change your TV's input source to the component that you plugged in.
Hope this helps!