S-video is two cables in a single jacket.
Componet, while 3-cables, is still just transcoded 480i on composite, and does nothing to increase video quality unless it is a quality set of component cables and a cruddy composite cable.
Component doesn't automatically make a signal 'better'. Most component video STARTS as a better signal and is kept better by using component. Transcoding from s-video or composite to component won't improve image quality. Using a scaler (DVDO or other) to process the composite to component will improve quality.
MORE ON SUBJECT:
You want to focus on getting a decent video capture card for your PC and a decent video editing program. Analog editing is far more cumbersome than digital editing. So, if you are going from VHS, VHS-C, 8mm, or Hi-8mm into a computer, you need a pretty fast machine with plenty of hard drive space and a video capture card in it that really can do solid full frame captures with no problem.
Pinnacle is one of the leaders in video capturing and editing software and hardware which is worth taking a look at. Some of their stuff is rather inexpensive, but other stuff falls squarely into the prosumer level and will give you the best possible quality from your VHS player that is possible.
NOTE: A better VHS player could possible have a significant impact on your quality as well. Not sure of the quality of your current machine, but a nice S-VHS machine will start, and keep, everything in the s-video domain which could help overall quality a bit.
EDIT: Poorly quoted Brian from prior post - sorry