I checked my manual's specs...the model or two up does the conversion, but this one does not. I was just going on the theory that maybe sending the receiver a better signal to begin with might result in a better signal once it gets converted down to composite. It was worth thinking about anyway.
We're replacing our VCR at some point soon with a DVD recorder/VCR combo unit, and it'll have S-Video jacks. And probably a new TV at some point which will have a S-Video jack. And the receiver has composite video jacks too. So at least I'm nicely positioned for the future.
Thanks everyone. Wish me luck on my wiring this weekend. Shouldn't be too tough--replacing an 12-year old Pioneer unit that I bought when the original Dolby Pro Logic was getting popular.
If anyone remembers the old Service Merchandise stores...we used to rewire all the speakers and receivers and home theater demo area stuff probably once or twice a year so it got to be fairly routine. I always liked the challenge of doing it and helping customers with all their setup questions---every home theater was a little different it seemed. A good diagram and wire labeling go a long way in making a project like that easier and faster.