DVD->Receiver: optical or coax digital cable to receiver's digital input. Make sure you 'assign' the digital input to the DVD selector; ie if the cable is connected to 'optical 1' you need to tell the receiver that optical 1 is associated with DVD so that when you select DVD, it looks for the audio on the optical 1 input. You also want the input set to 'auto' so it will automatically choose the correct decoder based on the type of input signal (PCM, DD, DTS, etc).
Component video from DVD player to receiver's component video input. You may also have to assign the component video inputs.
DVD->Receiver: Same thing as DVD but obviously not to the DVD input. Use Video1/Video2 or whatever input.
Receiver->Projector: Component Video cables from receiver's component video out to the projector's component video in.
If the audio cuts out momentarily it is often caused by the receiver losing sync. The pause is caused by it re-identifying the type of signal to determine which decoder to use. That should happen rarely if everything is connected properly.
