help hooking up dvd, ps2, tv?

I just got a new lcd tv and have been having problems hooking everything back up to it. I can get surround sound and a picture on the tv with just regular cable tv. I can get picture only and no surround sound with the ps2, and surround sound and poor quality picture with the dvd player.
The tv is a Sylvania 6620LCT
The dvd player/surround sound is a Philips surround sound home theater system dvd player (HTS3410D)
The way i have it hooked up im sure is wrong, but heres what I've got: Digital audio cable from cable box to dvd player, red white audio cables from audio out on cable box to audio in tv on the dvd player, s-video out on cable box to s-video out on dvd player, s-video cable from ps2 to tv.
any help is greatly appreciated. thanks.
oh yeah component video from dvd to tv

Ok. I'll try to take this in chunks.

First of all, let's start with the cable box. The digital audio cable from the cable box to the dvd player is good. You do not need the RCA cables (red, white) from the cable box to the DVD player. You would then have two audio lines from one source going to the same destination. It is redundant. The s-video out from the cable box to the DVD player is good. That transfers your video while the digital audio cable transfers your audio. Make sure both the video and audio from the cable box are plugged into the TV section on the DVD player.

From the ps2 you have a s-video cable going to the TV. that's why you get picture and no sound. s-video does not carry any audio. You need some sort of audio cable (RCA or digital) from the ps2 to your TV, if you wish to connect directly to the TV. I would take the s-video cable to the AUX input on the DVD player. Then run the audio line to the AUX input also. Then your ps2 will be run solely through the DVD player, just like the cable box.

The component cable from the DVD player to the TV is also good. That transfers your video from both the cable box and the DVD player to your TV. Your audio does not need to get to the tv, since it will come straight out of your DVD system.

Recap: If i were you, i would run the cable box into the TV inputs on your DVD player, and the ps2 into the AUX input on your DVD player. then both the TV and the ps2 will have good sound.

hopefully this will answer your questions. if you have more questions, email me.