Pretty sure the rig will work with component to the tv, and coax, or optical, to the receiver. Just follow the set-up menu in the player so it will know where/how to output what.
If component will not work, there is s-video. I would work hard on getting component to work first.
Your system will work, and get the highest PQ your tv will accept, no matter what.
The only down-side is that you will have to select the audio in the receiver, and the video in the tv, every time you change sources.