Don't virtually all Blu-ray devices currently limit component video to 480p for "copyright protection" reasons?
...dunno what a "foxtel" is , though.
I'm guessing a cable service provider of some sort for Foxtel.
BD is limited to 1080i video output of Blu-ray Disc across the component video outputs. With an older TV it is unlikely that 1080p resolution is supported within the TV to begin with.
DVD, on the other hand, is limited to 480p output. This would be bad if DVD was actually stored on the disc above 480p, but it is not. In fact, it's stored at 480i, then must be (properly) deinterlaced to 480p by the player.
I use component video for almost all of my connections throughout my home with a distributed video system and six displays. It works great for HD.