The length of toslink doesn't matter like COAX. As I said, you could try using the toslink output from the TV, but it's likely that it won't work with a 2-channel DAC like the Audio-GD. You may have to get a cheap Sony bluray player to stream Netflix. These have an setting in the Audio section for "Downmix: stereo". It will output a 2-channel digital signal for the Audio-GD DAC and you can use the bluejean 1694A for this. Then just use a standard toslink for the satellite. It's important to go into the satellite receiver menu and make sure that "Dolby Digital" is disabled so that it sends a stereo digital signal through toslink.
The back of the Yamaha has switch settings. These are basically EQ settings to boost/cut certain areas (such as bass / midrange / treble). It is best just to set these at "0" or "Flat" to start with.