simple HDTV question.

Component cabling does not support HD as well as DVI or HDMI.
Using component, you convert from digital to analog at the box, then analog to digital in the TV. DVI or HDMI keep it digital.
Using HDMI or DVI also allows the aspect ratio to change automatically - a very nice feature.

DVI also supports prog scan, and without the d-A, then A-d conversion of lesser connections you'll be way ahead.
Go DVI at the box to HDMI at the TV. You can get cables that have DVI-HDMI connetions, or DVI-HDMI adapters. The only thing you'll miss is the sound as DVI doesn't carry audio. HDMI does.
Nice that you've got two HDMI inputs. When you get your new HD DVD player, you'll be good to go.