Hiyas fellas,
Thanks for input (Santa, I'll pass).

1. I looked on crutchfield, and oddly enough they do not have my TV (or any Toshiba TVs) nor do they have my samsung receiver/dvd.
2. My receiver/dvd I think is the problem (or so my friend has said). It was only $250, and as such does not have many capabilities, specifically no S-Video IN or Component Video IN.
3. Was the S-Video tied to my Aux 2? I dont know - my xbox was. I had video/audio for xbox plugged into Aux 2 on receiver. The S-video ran out from reciver -> TV (but I dont think it was Aux 2.
4. I cannot move the xbox anywhere else that I can think of and keep the surround sound. There are only 2 video sources on receiver, aux1 and aux2 (in addition to Svideo OUT and Component Video OUT).
What we've done to make it work is:
1. Run component video out from recvr to tv (good for DVDs only).
2. Run xbox in aux2 on recvr
3. Run Composite video out from recv in to TV
4. Run compositive audio/video from recvr to satellite.
I am getting only monster Video 2Compositive quality with satellite - but I cannot think of any other options.
Nim