Audio over HDMI
Troyboy,
You are correct that the HDMI cable is capable of sending multi-channel audio along with the video signal. With your receiver, you could use the HDMI cable to connect directly to the TV to output 2 channel audio on your TV speakers.
The newest receivers in the $1500 range have HDMI switching and could pick up the digital audio signal off of the cable.
Since your HK receiver obviously does not have this feature, connect an optical or digital audio cable from the DVD to the receiver. No connections are necessary from the receiver to the TV. The speakers on the TV are likely inferior to your surround system.
For video from your satelite box or other sources, I would recommend using a component video cable and the switching capabilities of your receiver. Also use a digital audio cable if possible.