Having tried both output methods from my PC to my HLM 507W let me give you some input. There is no question that the DVI outputs the absolute picture to this TV. Crisp picture, no video noise, absolutely perfect. I am, however, currently hooked up to my TV via VGA. I am only doing this to take advantage of the DVI output of my TS-160 STB. High Definition deserves the best possible connection IMO.
A word of warning if you are going to connect via VGA cables - make sure you get a nice thick one. When I first connected via VGA the picture left a lot to be desired. Once I got a thicker cable I could barely notice the difference between the VGA and DVI.
If your cable/sat box doesnt have DVI, definitely give this connection to your computer.
And, especially on the DVI cable, make sure that it doesn't run near power cables, and especially not parallel to them.
I bought a DVI cable when I first got my 507w to hook up my SIRT-165. It was crisp, but there was video noise at the top of the image. So I devovled to using component. Later I read somewhere in this forum that the problem was likely interference from power cables. So when I had the chance to reroute everything (A/V receiver came back from repairs), I took some time and routed my signal cables away from the power cables. Since then the DVI has looked fantastic. I can't say that it's night & day better than component. I've used it to great effect with my PC, though.
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