Component signals and the scan format are not related.

Component video, unlike S-video, carries 3 independent signals containing color and intensity information. It can be delivered either as interlaced or progressive scanning.

It looks like your TV accepts component video but does not accept progressive scan. Even in this case the image quality should be better than through S-video.

To take the full advantage of you DVD player you need, I'm afraid, to get a new TV set