Hillskill
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HDMI would conceivably give you a 1080p (though there are current no games that actually utilize 1080p) output where as the component cable is not capable of this and thus not as good.
I have found the HD VGA gives the clearest sharpest picture on my 32" 720p television but probably wont be the case with you.
A component cable IS capable of outputting 1080p for everything apart from HD-DVD playback.