Sony and Sky

I have a Sony Bravia TV and a Sony DVD recorder with hdd. I recently signed up to Sky and found I could not get my recorder to work properly. I got in touch with the installer who came out and spent about a half an hour trying to connect my recorder and TV to the Sky box. He got it working but I now have an icon in the left hand corner with AV cable - DVD and whatever channel I happen to be watching. I thought with a Sony TV and a Sony recorder it would be a simple matter to connect them to a Sky box. I previously had them working on NTL. Also the Bravia has two settings - analogue and digital. When I queried why my channels were tuned into the analogue channel setting I was told that the signal is beamed to a satellite as digital but comes back as analogue. So it seems there is no such thing as digital television! Also I now cant watch one station and record on another.