Thanks for the replies guys. I've heard there is a notciable difference between HDMI connection and the component cable. I don't know whether this is true however. I see the new consoles don't ship with the component cable, but the standard definition cable...
Go with HDMI. It is superior to component. Component cables are analog, meaning the signal will have to go through digital to analog conversion, then be converted back to digital. This opens the door for reduced picture quality. It also means more connections
(3 for video plus whatever you need for your particular audio Vs 1 total). Component cables also need to be of very high quality (AKA: expensive) to rival HDMI in any way. With HDMI, you can get an inexpensive cable and it will function just as well as an
expensive one. There is really no reason to consider anything except HDMI, unless your TV doesn't support it.