No go there - DVI/HDMI to component conversion is something of a sore subject among studios (they've been working so large to close what they see as "the analog hole" and this would sort of re-open it), but even ignoring that issue, the 990's DVI switching is a pure pass-through sort of switch. There is no manipulation of the signal taking place. You can think of it as two parallel roads that never connect - one for analog video (complete with options for changing lanes from the slower composite/s-video "lanes" up to the component video "fast lane") and one for digital video.

Without a DVI-HDCP or HDMI input on your display, the 981HD isn't really a great investment. It's strengths lie in its digital video output, and OPPO has in at least some instances referred to its analog video outputs as being "for diagnostic purposes only." Is your \Vega set HD, or is it just SD? I'm used to thinking of the \Vegas as SD, but I only sort of peripherally keep track of Sony's product lines. If it's SD only and you're six months or more away from an HD purchase, a 980H purchased now would give you good core DVD performance now as well as good DVD-A/SACD, Divx/Xvid, the USB input to play with, and upscaling as a bonus for when an HDTV arrives later. If you did decide to wait or didn't mind using s-video output for six months, I'd feel comfortable pairing the 981HD with a 61" DLP (with the caveat that you need to calibrate - but that's something that'd need to be done anyway).