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1. I propose to connect the DSP to the preamp tape input but also connect the CD to the DSP with a digital (optical or co-axial) connection so I can explore the concert hall effect with my old CDs. Can anyone see a problem with that?
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None at all except that it doesn't really sound very good (IMHO) and you'll likely get bored of it -not a reason not to do it though! it'll certainly work.
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2. Is there much of an advantage in putting the DVD video signals through the DSP? If so I have to decide on a suitable connection. The TV will accept S-video via a scart and component video. Is there any sense in routing component video from a DVD through the DSP and then into the TV
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Just route the DVD to the TV via component, the DSP800 will do svideo switching but this has a perceptably lower quality than component. the only advantage would be if you had several svideo sources (satelite, consoles, dvds), then the video could be automatically switched with the audio, otherwise, stick with direct to TV.