What is the best way to connect direct satellite to lcd TV?

In order of preference:

1) HDMI: If you have an HDMI connection on both devices, use that.
2) Five wire: If you have component video (Three video RCA connections labeled YPbPr or YCbCr -- usually green (Y), blue (Pb), red (Pr) + two RCA audio connectors -- red/white for stereo right and left, respectively), use that.
3) S-Video: If you have an S-Video connector on both devices, use that.
4) Three-wire: If you have a composite video connector (yellow) + audio (red/white right/left)

Some people prefer #2 over #1. There's not a big difference, if any.