Good News! I found out it's my PS3 doing the interference. I took my HDMI and hooked it up to the DVR and then I ran the PS2 with component and there was no horizontal ghost bar.
Then, I moved the HDMI back over to the PS3 with my Ps2 still running in component mode and bloop, the horizontal line is back.
Now that I narrowed it down, I hope that the PS3 does not do this with all the HDMI's.
I bought this Mad Catz one and it says specifically for PS3. Strange how My PS3 isn't even plugged in and it causes that horizontal ghost line bar. I'm gonna get a new HDMI and see if that solves the problem. Atleast now I know that I can have HDMI and Component plugged in at the same time. I just got to figure out a way to get the PS3 a HDMI that won't cause that horizontal static ghost line.