Robang,
You may want to hold up on the 5860 purchase. Yamaha is soon coming out with a new line of receivers that accepts HDMI inputs. A new receiver that allows you to connect everything to it, then one line to the tv will make your life much simpler. HDMI, as you may well know, eliminates all the audio and video wires necessary for a digital connection. You want to control everything with one remote, and have the least amount of wires going to and from your cable box, receiver, and tv.
The setup you mentioned is perfect for your viewing needs. BTW, great tv set. KV34-HS420 HD ready Wega wide screen. Excellent choice.
It sounds like you're not into sound as much as video, so I'd hold off on the speaker upgrades and put that extra cash into a new Yamaha receiver with the HDMI inputs. If you can hold off for a few months, most of the manufacturers will be offering HDMI on the mid to upper level units. Just don't forget, the HD satellite feeds offer digital sound, and connecting your Dish box to your new receiver via HDMI (or any digital means) equals digital surround sound. My SA8300HD sound is as good as most of my dvd's.