Found a site to explain DVI vs. HDMI vs. Component Video a bit better (doesn't help much though, l o l).
"DVI/HDMI and Component Video are all video standards which support a variety of resolutions, but which deliver the signal from the source to the display in very different ways. The principal important difference is that DVI/HDMI deliver the signal in a digital format, much the same way that a file is delivered from one computer to another along a network, while Component Video is an analog format, delivering the signal not as a bitstream, but as a set of continuously varying voltages representing (albeit indirectly, as we'll get to in a moment) the red, green and blue components of the signal."
"So, which is better, DVI or component? HDMI or component? The answer--unsatisfying, perhaps, but true--is that it depends. It depends upon your source and display devices, and there's no good way, in principle, to say in advance whether the digital or the analog connection will render a better picture. You may even find, say, that your DVD player looks better through its DVI or HDMI output, while your satellite or cable box looks better through its component output, on the same display. In this case, there's no real substitute for simply plugging it in and giving it a try both ways."