Randolph, the other replies have pretty much covered the issues, but I'll point out that you've misinterpreted the provisions on p.68 of the player manual that you quoted. That section refers only to setting a different black level, which can't be done on progressive; the manual states(p.18-19)that either progressive or interlaced output can be selected for the component outputs. Since, as was said, your TV isn't progressive scan, you should select interlaced output and can use either S-Video or component connections. Component, in general, should give a slightly better picture, but S-Video(separated video)is a good connection as well.
