The problem with using component cables is that the copy protection scheme built into some movies checks to make sure all of the hardware, including the tv/monitor, is on the approved list. HDMI allows that and component cables don't. If it cannot confirm the hartdware, it will actually display in something like 480.
The reason Im asking is because Im looking into getting a new receiver. Iv got a 50in LG plasma,PS3, and hd sat. Anytime I want to watch a dvd or play a game I have to disscounnect my sat box and hook my hdmi cable into my ps3. So I was looking at different receivers that had at least 2 hdmi inputs and1 output.
I think Ill just buy a receiver that has the hdmi hook ups that I need.