I heard S-Video was better then component.
Anyway, as far as going S-Video, I'd recommend it ONLY if your TV has a direct S-Video port in the back. If you have to plug it into a VCR and at some point the signal switches to composite (ie: your TV doesn't have an s-video input, or the VCR is hooked up to a 2nd VCR without s-video), putting down a lot more cash for s-video cables is a waste.