This question was asked up in Flat Panel tvs. If you don't record shows anymore with your VCR, remove it from the wall cable and just run the wall cable into your cable box or whatever you are using to supply the tv video. Then attach your vcr directly to your tv with component/svideo/yellow composite (best to worst), then the vcr's sound cable, optical/coax/red&white rca (best to worst), directly into your receiver.
If you still use the vcr for recording, you'll have to keep it the way it is.
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