Don,

I hooked my box up this way:
1. Connect RCA audio cables (left & right)from the cable box's audio out connectors to the TV/Cable audio in connectors ( left & right)of my receiver. This will handle the analog audio signal.
2. Connect a coax digital cable from the digital audio out connector of the cable box to a digital coax input on my receiver. This will handle the Dolby Digital signal from the cable company.
3. Connect a video or s-video cable from the connector on the cable box to the video or s-video input on the receiver.

On my system I have to switch the audio signal fron analog to digital depending on whether I'm watching a digital or analog cable channel. There is quite an improvement with the digital sound.

Good luck!