I have a dilema about component and HDMI..

I see you have a Vizio. You can calibrate the PQ settings for each input. Are the settings exactly the same on HDMI2 and Component 2?
 
In reference to "busted", that's also true as applied to HDMI cable "quality". Since the HDMI signals are digital, it's pretty much all or nothing. Only a very extreme problem in the cable could cause a degradation in the digital signals, like a poor connection so bad that it contributed to BER or etc. Not true with the component cables since that is an analog connection. But for short distances like in most HT setups, the difference in PQ between the most expensive and most utility-quality component cables will be indiscernable to the eye.

HDMI ver. 1.3 has a greater bandwidth that is necessary for the upcoming "Deep Color" protocol and the lossless bitstreamed audio formats like TrueHD and DTS-MA. But 1.3 won't make any discernable difference with the current generation sat. receivers vs. HDMI 1.0. I don't consider the cable differences of 1.0 vs. 1.3 to be "quality" distinctions; they're simply spec'd differently for different applications. But in this situation at this point in time, that distinction is moot.

You might want to check out this link for more explanation. (Credit to NightRyder for providing it in another thread on HDMI 1.3!)...

Understanding HDMI Ver 1.3 — Reviews and News from Audioholics

FWIW, I too find component connections to provide a richer, warmer color rendering as opposed to HDMI, but that is very subjective and unscientific, and I'm fairly certain that if I took the time to calibrate each input independently I could make both look very similar. HDMI however seems to me to have the sharper image. For that reason I leave everything in the HDMI "mode" and keep the component connections from sat. receiver to TV only as a back-up (my first 622 had a bad HDMI socket) and for times when my system is "multitasking", like when I'm listening to music but want the TV to be showing the weather channel or similar. Overall HDMI has the greater potential and eliminates the need for separate audio connections as well. But as with everything else, YMMV...!
 
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