I'm having a similar issue with my 1070. No interlaced signals are passing through the component out, at least that my Sony CRT can detect. Same component input works fine with direct interlaced signals.
The seemingly bizarre thing is that on mine component 480i is coming across the S-Video out. Are all your switched component sources progressive?
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Outlaw 1070
Sony KV-30HS420 CRT
Sony DVP-NC685V DVD
Slim Devices SqueezeBox 3
Klipsch all around
Logitech Harmony 880 remote