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Component can handle 720P no problem, the only advantage of going to VGA will be upscaled standard DVDs. Component will only upscale to 480P because of rights issues will VGA will upscale to 720P.
I didnt like the VGA "look" personally color seemed washed out to me.
Lolz I actually have both!!... I don't know if you'll see the same results as mine but here it is..
Component-
Much more Deeper colors and higher contrast than VGA. The colors makes the textures jump out at you a little bit, well at least more than on VGA. In other words color red, really look red and not dark orange like VGA.
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VGA
VGA has much less contrast and less deeper color which create a more gray-tone mix into the colors ..VGA look a bit more shaper and the refresh rate seem to be a little bit better too.
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This was all tested on the same HDTV running at 1080..
If you ask me there is really no huge difference but I normally use the VGA because it is a bit shaper and the refresh rate is a little bit faster when there is alot of action happening on screen.. And about the colors I usually play around with my HDTV color menu to match the colors to my taste..
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