I use S-Video for my Panasonic DVD recorder - I've run out of scart and HDMI sockets!
The picture is pretty good. I was using S-Video for my Humax PVR as well, but I've just daisy-chained that onto my sky+ scart. The PQ via scart is better - less "ringing" on sharp edges.
i only have one scart on my TV and currently have that in use for freeview. i considered a scart-> s-video connection for that so my DVD could take over the scart but i am not sure whether it can ouput s-video (its an oldie freeview box too - ITV Digital Philips DTX 6372) and plus i dont think my Tv auto switches on S-Vid (composite is on the same channel and that does not auto-switch) which is handy as turning my freeview box on and off automatically changes the TV channel (plus my VCR is daisy chained through it and that auto switches when playing tapes) i considered a scart block but cant seem to find any decent quality ones. what do i do!?
S-Video won't auto-switch, only scart can do that.
Your cheapest option would be a scart switcher. I don't use one myself, because the DVD recorder that I've got connected currently with S-Video isn't used much. My other DVD player is connected using HDMI. Have a look at the units sold by Keene Electronics, they only seem to sell good kit.
The other option would be to replace the Freeview box and VCR with a PVR, then daisy-chain the DVD player to the PVR.