32WL48 LCD advice for an Newbie

Hi all

This will be my first LCD TV and I'm after some advice and recommendations please. I’m changing my trusty old 100hz Sony Wega 28”.

The Tosh will be used as a general family TV, for watching DVD’s and for playing Xbox games.

What I’m after are these questions answered :

1) What is the best way to connect up a sky digi box ( not + ). Is it still best via RGB Scart ?

2) My DVD player just appears to have Scart output. It’s an LG combined DVD / Video / 5.1 system that we purchased to save space. Will this look OK via RGB Scart ? Is it worth changing the LG for another DVD player with more upto date connectors ? Is the improvement in picture quality worth this change ?

3) If yes what would be the cheapest DVD and surround system that everyone would recommend ?

Cheers