RCA: Low quality audio/video
Composite: Low quality video
S-Video: Medium quality video
Component: High quality video
Optical (toslink): Medium quality audio
Coaxial: High quality audio
For some strange reason, people at AT tend to mix up optical with coaxial. In fact, coaxial sounds better than optical, and not the other way around. If you can use coax, go ahead. If you can afford high-quality interconnects, go with
BetterCables. If not, Radio Shack will do just fine.
Also, you mentioned something about upgrading from Pro Logic to DD. Well, it seems that you're a little out of date. DD isn't top-of-the-line anymore. You want a receiver that can handle DTS-ES, DD EX and Pro Logic II. Here is why:
DD EX: Upgraded DD, now supports a 6th, rear center channel.
DTS-ES: Upgraded DTS, now supports a 6th, rear center channel. Sounds BETTER than DD EX.
Pro Logic II: In a nutshell, this makes regular 2-channel audio (most TV/satellite broadcasts and music CDs) sound like DD. Same thing as Pro Logic, but sounds a whole lot better.
Good receiver manufacturers are Marantz, Denon, Outlaw, Onkyo, Integra, in no particular order, as well as others. My recommendation would be Denon 2802. If you can afford it, get the Denon 3802 (what i use) for TWO rear center speakers.