Relax. The TV you have is great. You'll be plenty happy once it is setup correctly. You'll need to spend some time researching and getting up to speed on how to accomplish this. One post on C|net wont fix it.
But here's a quick primer.
You have connected the set using composite video which will never give you an HD image. You'll need to connect something using component or HDMI and then make sure the source and tv are configured to display at a higher resolution. A composite image on a big tv looks like a very large bad picture. It is a common shock for customers who first set up their first big tv at home by themselves.
So, get ready to do some reading starting with the manuals. They'll have lot's of help on getting started.
Or, find a Home Theater installer and pay them for their expertise. You might consider a universal remote at a minimum so that switching between sources is simplified for you. Or you'll have to remember how to switch everything yourself and then explain it to the Mrs. who will perhaps end up with even more frustration over the purchase.
Probably not what you wanted to hear, but as much as we would like to think electronics make our lives easier, they really dont unless we spend the time to understand the technology.
The next thing you will have to research is how surround sound works. Just because you have a Bose 321 doesn't mean you will turn on the system and have a Dolby 5.1 theater experience. This too will take some setup and configuration, again - read the manual.
Hey, if it were easy - everyone would do it.
The Tech Source
Home Theaters and more... in Southern California
After much consideration we chose the 52" LCD 1080P by Sharp. We picked it up today from Costo and just turned it on, is this it??? this picture truly is lousy! We are using the red,white & yellow cords coming from a Dtv std. receiver. ( Dtv cannot install the HD DVR for 3 weeks!) Is it the receiver? Is there a trick I am not aware of? I have monkey'd around with the settings but have not been able to get half as good as picture as was in the store. We also purchased the Bose 321 for this but may not even open the box if this is as good as it gets. The room we have it in is a basement with very little outside light. Can anyone out there help? My wife is wanting me to take it back!