QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

I currently use my PS3 or Xbox 360 for DVD Playback.
I know that XBMC is capable of Upconverting Video, but obviously with RGB, 480i is as high as it will go.
If you're major concern is upconverting DVD's then I wouldn't worry about using XBMC. Your PS3 through HDMI is already doing that, and it's doing it better. I have my XBOX360 connected through HDMI on a 1080p resolution and my DVD's look nice,. although I'm not sure if the 360 does any upconversion the way the PS3 does.
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

Would it help Video Output to get Component Cables? -Is the output THAT much better?
Component Cables will always help when chosen over Composite. Components are capable of outputting the various progressive resolutions (HD). Composite can only output in 480i (SD).
You ask "Is the output THAT much better?" The only factor is going to be how keen is your eye to spotting the difference. If you're getting Component to go from a 480i to 720p (or higher) then you'll notice a very substantial difference. If you're getting it to go from 480i to 480p it might not be as noticeable but you'll still see a difference. I mean you're going to have to see some kind of difference because you'll be seeing 480 scan lines per frame on 480p compared to the 240 scan lines per frame with 480i.
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

Would it help Video Output to Mod in S-Video or any other output?
S-Video is crap don't waste your time/money. The leap from Composite to S-Video is as substantial as the leap from Sega Genesis to Sega 32x. It was worthless and didn't offer anything except to fill the pockets of those who created it. You mentioned modding an output I assume you're talking about on the XBOX. In any case if you're going to do that go the vga route.
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

If adding Component Video Cables, will the output be better than standard output by my PS3?
I'm not sure what you mean,. but I wanna say no. I'm not sure what you're referring to as "Standard Output". If your PS3 is outputting through HDMI at 1080p, then No. Component will never compare to HDMI. Plus when you're talking about the last gen consoles, none of those consoles can output in anything close to 1080p anyways so they'll always look worse in comparison to the PS3/360 through HDMI.
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

Would my PS2 be greatly enhanced with Component Video?
"Greatly enhanced" No. But you will see an enhancement. The PS2 wasn't designed to take advantage of todays HDTV's. I think there's only like 5 PS2 games that even output in 480p, everything else is 480i. Components would still help, but they'll only offer a small help. Your HDTV will undoubtedly show the limitations of the PS2's dated hardware regardless of which cable you purchase. (I'm currently experiencing this one right now. I just bought a set of PS3 component cables for my PS2. They work for both consoles and seeing as how Sony decided to discontinue making them for the PS2 it essentially forced me into buy the PS3 ones.)
I mean Why offer PS2 component cables when you can repackage the same cables as PS3 cables and charge 10 dollars more? 
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

Would my Wii be enhanced with Component Video?
Yes. I have components for my Wii and it looks great. I wish I could tell you what the Wii can output in but I don't remember off the top of my head. I think it can output in all except 1080p. Either way, components for this console are a good choice. Also,. ALOT of the GameCube games ran at 480p and when you pop a GC game into the Wii (with component cables connected) the GC game, if it runs at 480p, will recognize that you have the cable plugged in and prompt you if you'd like to play that game in 480p.
QUOTE(PreludeOfDeath @ Jun 22 2009, 09:56 AM)

I guess in the end, I am wondering, Is it worth the cost ($10-$20 per cable) to replace the RGB with Component Video?
I currently have 2 open Component Video slots, 1 VGA, 1 S-Video available on my TV.
I'd definitely get the Wii components. The components for the XBOX would also be a good purchase although some would probably try to convince you to go the VGA route. It seems like alot of work though. The PS2 component cables would help, but since you're going to have to buy the more expensive PS3 cables, you're looking at a 25 dollar purchase for a cable that will help a little, but not much. I guess it all depends on how much you still use your PS2, and if that little boost would be worth it to you.
Also if this helps I'll rank the various cable types from 1 to 5, 5 being the best.
5 - HDMI / DVI (both of these carry a digital signal and are capable of displaying high resolutions) DVI is usually found on monitors and HDMI is generally found on HDTV's. The differences in video quality are very small (if there's even any difference at all) Their one difference is that HDMI can also output digital audio as where DVI only outputs video.
4 - Component / VGA (a.k.a. RGB) (both of these carry an analog signal) Their differences are few. VGA is usually associated with PC's and Monitors while Component is associated with TV's. Both display RGB. Although VGA handles other things as well. Such as H-syncs, V-syncs, refresh rates, things more commonly found in PC monitors. Seeing as how consoles are specifically designed to run on TV's I usually choose Component over VGA.
3 - S-Video I almost hate to rank this one because it's improvements over Composite are negligible. It offers a slight improvement over Composite. Nothing that you're going to notice on your HDTV. This cable phased out almost as quickly as it came in. Why companies are still offering this port on their HDTV's puzzles me. I guess they want to give the customer (who uses S-Video) the option. Anyway, just because it's ranked 3 doesn't mean that it's ANYWHERE close to 4.
2 - Composite It's been out for a VERY long time. It's done it's job and it did it well but it's definitely on it's way out. It's advantages were that it separated the video signal from the audio signal back when Coax was the standard. Just about every cable now a days does this (with the exception of HDMI. HDMI doesn't need to separate the two signals because it's capable of transfering both audio and video at a high bandwidth without the need of compression.)
1 - Coax I rated this a 1 because as far as for videogame consoles,. this is the worst. But Coax is by no means a bad cable. It just depends on it's specific application. It works well for digital TV. It also works well for Highspeed Internet. It's design allows it to carry an electric current which gives way for signal boosting. This makes it the cable of choice for people wanting to transfer information over a long distance. It doesn't effect digital output as much as analog because digital is much more compression friendly. This is because a Digital signal can be more effectively decompressed on the receiving end than an analog one.