Yeah the component on the TV works fine with an interlaced signal directly from the DVD.

I'm just worried that I'll go buy a new HDTV and it still won't work so I would like to know why it's not working now. I mean I know the SDTV obviously won't work with a 480p signal, but I figured it would have worked with the s-video/transcoded signal from the Tivo.

I've narrowed it down to this one because I want a smallish LCD that is dirt cheap:
http://www.bestbuy.com/site/olspage.jsp;jsessionid=OSGK4HSZT0HCHKC4D3DFAFY?skuId=7768711&productCategoryId=cat03004&type=product&tab=4&id=1142288915135

I'm sure it's far from the best but $400 is the top of my budget for this TV since it's just secondary.