I'm doing very much what you describe, with DVD, Super VHS VCR, and digital cable all connected to my 1050 via S-Video. When I get the 950, I'll also connect my Dreamcast via S-Video (currently it goes to the front inputs of my Mitsu TV, and I connected to TV's audio output to the 1050). It works great for me, but the thread you mentioned did reveal that some video sources apparently exceed the industry standard output voltage for S-Video, which causes the 1050's switching to have problems. It is dependent on the source, and apparently can be somewhat remedied by using different cables.

Is S-Video worth it? I sure think so. Mitsubishi made some very nice direct-view TV's back before the dropped them and went to rear projection exclusively (I think they're messing with plasma now, too) -- the DVD and XBox would probably both benefit from switching from composite to S-Video. As for a good S-Video cable, I've been very impressed with BetterCables Silver Serpent S-Video, although it is a little pricey compared to a cheap Radio Shack S-Video. You might just go BetterCables for the DVD and the monitor out from the 1050. The cable box is starting out composite anyway, so at least at first a cheaper cable won't hurt. (Maybe once the new Outlaw PSC-75 comes out, Outlaw will look into making an S-Video cable?) By the way, I'd recommend avoiding Monster S-Video cables. I've had some real bad luck with them (one that had a bad connector, several that didn't look any better than the RS S-Vid cables I had lying around).

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Gonk