This will be easy. You have the multichannel analog inputs on that receiver; the outputs from the Surround Master will connect to those inputs. Use the tape rec output connection on the receiver to feed the input of the SM. When you want to listen through the SM, turn on the multichannel inputs (button 11, on the diagram you sent). Make sure the tape out mode is set to "Source".
With the receiver turned on, the tape output set to "source", and the multichannel input turned on, and the SM turned on as well, you're ready to adjust the SM. Start with the input level control in the middle detent setting. Set the SM to the Involve 4.1 setting. Play a record; slowly turn the input level control up until the red LED, directly over the control, begins to flash with the music. Back off of it slightly. You only want to see that flicker on extreme program peaks. Adjust it more if you need to. The level controls should start at the detent settings; you can adjust them to your taste as needed. Ideally, the level should be the same on all channels, but your listening position, and room layout, may dictate a different setting.
The Involve setting gives you both 4.1 and 5.1 settings. The 4.1 setting gives you the front and rear speakers, as well as your subwoofer. The 5.1 adds the center into the mix, as well. When playing music, try both settings. I prefer the 4.1 for music; try both and see which one you prefer. You have the same settings for SQ. The Involve mode does a great job with QS-encoded music, as well as Dolby Surround. It also does great things with stereo recordings, creating a very solid surround image with most. The effect will depend on the recording itself. The SQ mode should be used for SQ-encoded records; you could also use it with stereo records, but the effect is better with Involve. TSS is Two Speaker Surround. It created a wide soundfield with only two speakers.
Have fun with your SM. You'll rediscover your record and CD collection, all over again.
