I have the same setup that you do. Even though my AVR has component video input, I bypass that. I hooked up my progressive scan DVD player w/ Faroudja chip directly to my 42" plasma via the IXOS component video cable.
My AVR component video input has bandwidth frequency limited. The board inside the AVR is not the best.
To resolve my (or your) setup problem, I purchased a Sony Universal remote control, Sony RM-AV3000. I use the macro function as a single touch feature to program sequence. For example, the macro function 1 is to turn on the plasma, turn on the satellite decoder, and turn on my AVR. I need my AVR and stereo mode to watch TV since the plasma is an old unit, which does not have its own speakers. To turn it off, press macro function 1 again.
To watch DVD, press macro function 2. It will turn on TV, switch input over to component video, turn on DVD, turn on AVR, switch input of AVR over to DVD.
After finish watching DVD, press macro function 3. It will switch the TV input back to S-video, turn the TV off, turn off DVD, swith the AVR back to satellite mode, and turn the AVR off.
If your recess light is remotely controlled, this Sony RM-AV3000 can dim your light as you are about to watch a movie as well. If you press pause, it turns the light back up for you. Of course, you got to teach it. It is fast and fun to teach. Hit a button on one remote to transmit signal (teach) while hitting a button on Sony RMAV3000 to receive signal (learn). Labels on touch-screen can be renamed to match your original remote controls. Instead of having 5 remote controls, I now have only 1. My wife & kids like the touch screen on the remote. Some people do not like the finger prints on it. If that's the case, either get thin-film cover for PDA and trim it or get a PDA pen.
There are lots of awesome remotes outthere. Phillips, Marantz, Yamaha, and many others. Check out RemoteCentral.com
