Hi Ayien,
HDTV-Ready component-video switching means that the component-video inputs are wideband, which means they will accept a progressive-scan DVD player's output as well as the signals in several formats from an outboard High-Definition TV tuner or HDTV cable decoder. These include 480p, 720p, or 1080i signals. A progressive-scan DVD player outputs a 480p video signal. The "p" stands for progressive-scan, the "i" for interlaced video.
Standard component-video inputs will accept only NTSC video. The wideband outputs are needed so the HDTV and progressive-scan signals can be switched by the receiver without picture degradation.
Regards,