I have a simple connection now BD and Satellite (DishNetwork HD 722 DVR) both connected to Marrantz via HDMI, then a single HDMI out to Vizio LCD TV. Both DVD and TV picture and sound are awesome,
Then when you do get PS3 the HDMI interface is very,very nice. Component is just not as good.
P.S. - I briefly had the PS3 connected via HDMI through Marantz to TV (PS3 detects HDMI and goes through nice auto-setup); Very Very nice.
It is now upstairs in media room as a gaming machine connected to 55" Mitsubsishi Diamond through component; very good but not the same. The Mitsubsihi doesn't have HDMI input only Y, Ra, Rb.
Cheers,