I'm fairly sure that S-video is interlaced only, so it looks like you'll have to skip the receiver for progressive. Ultimately, it will keep your signal path cleaner anyway.
Here's an idea, though. Depending on which HDTV you're working with, the internal line doubler may be fairly decent, and since most (all?) DVD players output the signal through all ports simultaneously, you could hook up the DVD player both ways, so your wife can continue to use things the way she's used to, but when you're around you can make sure you're on the component input. I'm sure we all know how women (or people in general, for that matter) don't like to be "out of the loop" and not know how to work things as well, but at least that way she'd be able to use it without having to re-learn the new setup.
Here's an idea, though. Depending on which HDTV you're working with, the internal line doubler may be fairly decent, and since most (all?) DVD players output the signal through all ports simultaneously, you could hook up the DVD player both ways, so your wife can continue to use things the way she's used to, but when you're around you can make sure you're on the component input. I'm sure we all know how women (or people in general, for that matter) don't like to be "out of the loop" and not know how to work things as well, but at least that way she'd be able to use it without having to re-learn the new setup.