Q) Anyway, my first question about that is: if your 1080i source (player, etc) has an HDMI output but does NOT support HDCP, and you run a HDMI cable from that to a AV receiver that DOES support HDCP, and then you try to output that to a 1080i HDTV that also does NOT have HDMI through a DVI cable, will the end resolution still be 1080i? <-- I mean, will the receiver scale down the res, even though the player doesn't mind?
A) The receiver does not supply HDCP handshake, it just passes it along bidirectionaly. So it's a non issue. If the player does not requirement a handshake, then nothing will - you will get 1080i or whatever
Q) The other question is: what is the max res that Component Video cable can support? If it is better than 480p, wouldn't it be better to go straight from the 1080i source (player, etc -- even if it is HDCP-compatable) to the AV receiver, to the 1090i HDTV, using only Component Video cables and Toslink Optical Audio cables?
A) Going directly from the souce to the display with video is actually the safest method. You avoid introducing any issues by having a switch in the signal path. Component can support any res including 1080i. The connection method you mention is not any better then any method that fully supports the required bandwidth including DVI. However, you can see differences in DVI vs. component connections. On my equipment, I prefer DVI. Others with different equipment prefer component. Also, sometimes bugs called white crush or black crush exist for DVI but not component. So, that could make component a better looking connection unless you've got an analog red crush issue. Bottom line is unlesss you are willing to buy exactly the same setup someone else is using and has worked out all the tweaks, you will have to try some tweaking to determine what works best for your setup. Both component and DVI support enough bandwidth for HD signals. But, only one supports HDCP.