James
I have a a Panasonic DMR EX85 much older than yours but I record of Sky+ box via its scart input it also records via its own freeview. As your virgin has two scarts connect the 2nd to the Pansonic and take the sound from that to your Yamaha. Also the Pansonic will upscale to your tv via HDMI you should compare 720p and !080p to see which setting is best with your TV, the settings are in the"functions" menu then "others" and then "setup" and then "connection" on my Panasonic.
Best wishes
Chris