Verified answer

Yes, There are two ways to pass 1080 video: component analog & HDMI digital. Both will work equally well with most HDTV receivers and displays.

The real advantage to HDMI is the convenience of encoding digital audio in the same connection, but I doubt that you will see any real difference in the image with most displays.

Component cables will carry 1080i signals but not 1080p. You need HDMI for 1080p. This is not because they can't do it, but current sources of 1080p (high def DVD, both HD-DVD and Blu-ray) only provide 1080p on HDMI, and those TVs that accept 1080p only do it on HDMI input.