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i also have an HDMI lag free Adapter for the Wii
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So using your theory, if I use component video cables with my PS3 instead of the HDMI cord in use currently, I should notice lower input lag then? My current LCD TV is not an LG though, in case that matters.
No, that theory is not correct as it sees the cause in the used cable.
There may be a difference
but this difference does
not depend on the cable used, it depends on the presets inside the TV / monitor!
Analog signals (like component video) are most likely treated differently than a high quality digital signal from an HDMI source.
The manufacturer has to guess what is most likely used on these ports and how to get the best quality from the given data on the screen. Component video: Some crappy self made cam pictures from your last BBQ, maybe a DVD. Quality-loss by analog connection included (the conversion from digital YCbCr to analog YPbPr is said to be lossless but the cable itself will do the rest). Necessary to improve that imagequality? Nope, nothing to rescue here so just a plain output.
BUT: These analog signals have to be converted to digital signals before they can be displayed on a flat panel display! Don't forget that. This conversion is a non-issue for todays hardware. It can be done on the fly...
HDMI-input: It's most likely a HD-Source at the other end. Most likely something like a HD receiver, BD-Player, etc. So everything that may further improve the image quality will be used.
Some monitors and TV-Sets allow to adjust all settings in the depth of the menus to get rid of all the eye-candy that consumes some time, others don't.
But there is nothing like a "lag free adapter". No cable adds a lag. It's just the way the monitor or TV handles the signal.
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If I connect directly to the panel rather than running through my reciever, would I see a reduction in overall input lag ?
That might be possible. It depends on the simple fact if your receiver just connects the input to the output or if it does some buffering or signal manipulation.