With this unit ... either way you will need a breakout cable (supplied) because the "s-video" isn't really S-video. I would recommend trying both. You may be surprised.
I saw it with both ... they both had their plusses and minus. The component's color was GREAT but blacks tended to fade into each other. On the s-video, the blacks were even and defined but the colors were obviously not as good (but still pretty darn good!)
If you have a good sources, both s-video and component should look very good. Having tested a number of DVD players, I will say that the s-video outputs seem much more consistent (ie good) than the component outputs, especially on inexpensive DVD players.
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