Not sure if anyone can help me with this, but I have a bit of trouble with my Plasma TV and I'm wondering if anyone here has encountered this problem before.

I have a Panasonic TH-42PZ700U and on Component 1 input no matter what's plugged in I get strange, extremely noticeable fuzzy lines/waves appearing horizontally on the screen. I have tried every manner of resetting the TV, changing the video settings on my game consoles, etc. It only happens on Component 1 and it is pretty annoying to keep switching between my Wii and 360 by plugging in and unplugging their respective component cables. I am using the official cables for both of the game consoles and when I plug them into Component 2 I do not get this same display issue - therefore I can only assume it is an issue with the TV itself.

Image so you can see what I'm talking about (it's a crappy image but you can plainly see what is wrong):
http://i1.tinypic.com/6tp7kg5.jpg

Anyone know what's going on here?

Well since it only happens on Component 1 but not when you move the cables to Component 2 then i'd presume the TV's Component 1 input is faulty. You should probably exchange the TV if you can, otherwise have it repaired under warranty.