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len,
You can run the composite, it won't upconvert though. You also do not neccesarily need to run HDMI. Depending on your equipment you may get the same or better result using component.
I recommend picking up both HDMI and component cables. Try them and see if one is better, the same or worse. If they are equal run them both.
HDMI (and firewire) both pass encryption preventing you from running a PC as a DVR. However some content will only give you the best possible signal if it the encryption gets a valid handshake.
Not a simple topic.
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