From a strictly video view, which gives the better picture HDMI or component cables, or is there any difference?

It depends. HDMI supports resolutions up to 1080p and can allow digital video sources to remain in the digital domain all the way to the display (which in many cases today is itself a digital device, such that the video signal never has to be converetd to the analog domain). As a result, HDMI can offer a better picture than component for certain cases. Additionally, upscaling DVD players are not allowed to provide an upscaled video output over any connection except HDMI, so for players that offer superior upscaling to that built into your HDTV you can only benefit from that upscaling via HDMI (component caps out at 480p).

While waiting on the technology to settle out, I bought a Sony HD CRT. It only has one HDMI input. I used the HDMI for my upscaling DVD player and I have my satellite input to the TV on the component cables.

What you have done is a pretty sound approach.

I found component too soft on the picture on my LCD versus the HDMI, YMMV. Thus, I used early on a switcher, simple one from monoprice with the IR switch that I programmed to my main remote.

The other issue I had with component was not a function of picture, but just of the acquisition and set up time on my old CRT set up, it took longer for the component than the HDMI to set up, so I stuck with HDMI for this reason also. My current LCD does not have this effect (and has 2 HDMI inputs), so net net, you will want to try both in your set up and see what makes you happy.

Thanks for the replies. Now I'm just waiting on the new Outlaw receiver to be released.