Dolby digital (audio) will travel down the RCA digital or the optical digital output of a dolby DSS receiver. Regular stereo and dolby prologic surround travel down the Right and Left RCA outputs of the DSS receiver.
Video goes out the S-video or an RCA video jack of the DSS receiver.
Connect one of the Dolby Digital output options from your DSS straight to a digital input of your A/V receiver. Connect the stereo audio outputs of the DSS straight to the stereo audio inputs of the SAME DEVICE of your A/V receiver. You MUST.
Connect the S-video output of the DSS straight to a S-video input on your TV.
Connect the RCA video output of the DSS to either your A/V receiver (and then on to the TV) OR an RCA video input on your TV. This is not necessary, but gives you a chance to compare RCA video against S-video by switching sources on your TV. If you have PIP this is simple to do, and very revealing.
Be sure your A/V receiver knows and is set to expect DIGITAL inputs. My Sony had to be told to. Make sure your A/V receiver is set to the device input your DSS is using.