Unless the processor you buy utilizes broadcast quality video switching circuitry (Proceed AVP--for S-video and composite only)then you are losing quality. I owned a B&K Ref-30 for a short span, and the component video switching capability is nice. B&K really tried, since they cut off the on-screen display on the component video outputs, but going through their switcher will still degrade the video quality. Also, I've heard that the current selection of component video switchers available are good for standard definition broadcasts, but if you jump to HDTV you might see a big loss in quality. If your HDTV has enough video inputs, use them directly.
Does component video switching hurt picture?
Soon to be purchasing HT gear, including receiver and progressive scan dvd player. Does utilizing the component video switching feature in A/V receivers degrade the picture quality? Also, if sending progressive dvd signal, does the switching pass the signal properly?