Originally Posted by ElwayLite
Joerod (very knowledgeable techie here) confirmed that the S2 will accept the enhanced 4:4:4 color. So, if you have a player that gives you an option to output it, use it.
Just like choosing whether your 480i DVDs should be scaled to 1080p in the player, AVR/Processor or display (if you have a 1080p display it MUST be upconverted to 1080p by one of them), the real answer to whether or not you should set your player to output 4:4:4 color - even if you know your TV or AVR can accept it - is "It depends".
It depends on which of your devices does a better job of scaling the 4:2:0 color that is native to every DVD and Blu-ray disc to the RGB color that every panel uses to create it's display. Conventional wisdom says that if you have a high end player with premium video processing, then setting the player to output 4:4:4 (or RGB) may be a good idea, since it may do a better job than the TV and you have the added advantage of having all of the processing done in one location. In practice, deciding whether to output from your player in 4:2:2, 4:4:4 or RGB (most players will not output the native 4:2:0 that is on the disc) should be based on testing each possibility and determining which setting works best.
Since every playback chain will end up converting 4:2:0 > 4:2:2 > 4:4:4 > RGB... it's really a matter of which devices in your chain do the best job of it. Testing your particular combination of equipment is the only sure-fire method of picking the right settings.
For more information, see the Spears & Munsil paper, Choosing a Color Space