To be more exact, the menus will be generated on a black background with component video inputs, while they will be superimposed onto the incoming video source with composite and s-video inputs. I think the menus can also be superimposed over the incoming video source with 480i component video signals, but I could be wrong - it isn't mentioned in the manual, and I didn't routinely use any 480i component sources with my Model 990 when I had one.

Additionally, the on-screen messages for things like volume and input are only provided with s-video and composite video inputs. They might also work with 480i component, but I don't know for sure.