Video connections
Frank, I am not aware of any receivers that down convert from HDMI to component video. Your best bet is to use component video from the receiver to the TV and from each source to the receiver.
Since you can't take advantage of HDMI, you might be able to return the receiver for a less expnesive model. For example, the Yamaha RX-V659 has plenty of power and features for about $400. Also, since you aren't using HDMI, you will need a digital optical or coax connection for audio from each source to the receiver.
Double check your TV for DVI digital inputs because DVI and HDMI are compatible.