Sounds like your connections are OK. Try getting into the DVD player's menu and cranking DOWN the sharpness control and setting the Velocity Scan Modulation control to OFF on the 32FS16. You may be over cooking the 1's & 0's a bit (no pun intended). By the way, nice TV and even before you finish reading this, go out and get the Video Essentials" DVD to dial in your DVD player and Sony. Then you will REALLY see how well they can perform. Good luck
SONY WEGA and component video .........
Recently bought a Sony Wega 32" KV-32FS16. Hooked it to my Sony DVD player by way of the component video connections but am getting a slight fuzzing around objects and pixilation in high detail scenes. when i switch to a super video connection it is less noticable but i loose the rich colors and fine detailed picture. Service center says picture through this component connection is as good as it gets but makes it very vulnerable to video noise. I read some people have had similar problems with HDTV stuff and progressive scan dvd. This is just regular component video using three 2 meter lengths of monster video 2 cables. I know..they are not the best of the best but still.. Sony dvd is the DVP-S530D model. Any suggestions please do tell. thanks.