Set up opinions and advice needed

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Craigis

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I have the following equipment:
Denon avr1907
Denon dvd1710
PS3
Mission M35i fronts
Mission M3as Sub
Mission M31i rears
Tannoy Centre
42 inch full HD LCD panel
MVix player for mp3 storage

I have set it up in the following way:
Conected the PS3 via hdmi cable to tv for video signal and optical cable to amp for sound. This is to watch Blu ray movies.
Connected the Denon dvd via RGB to the TV and sound via coaxial to amp. This is to play imported dvd's that don't play on the PS3.
Connected the MVix via rca to tv for OSD and via coaxial for sound.
Set main speakers to small and cross over frequency to 60Hz
All other speakers set to small.

Is this set up correct, or is there another way of doing things here?

Play cd's in the PS3, and in my honest opinion mp3 played via the MVix at 192 bit sounds better.
Would cd's sound better running via a coaxial in the denon dvd than a PS3?

I would also like advice on Plasma vs LCD?
Would a 50inch plasma that is HD ready and has a contrast ratio of 2 000 000:1 and a sub refresh rate of 600Hz and response time of 1ms have a better quality picture than a Full HD lcd with a contrast ratio of 2000:1 and refresh rate of 60Hz? ??? ??? ???
 
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