That's the way the Denons are too. It will upconvert to component, but it won't downconvert. So you need to feed the receiver a S-video or composite signal if you want it to output S-video to the TV.

With component no conversion is necessary so it is a straight bypass on the signal to keep it pure.
Dave


M60s, VP150, QS8s(3), SVS PB12-isd, Denon 3805, Emotiva UPA-7