I've been thinking lately that maybe running my 360 and DVD into my A/V receiver and then to the TV via component video may not be the best way. I have two comp. video inputs on the TV so why not run them directly instead of to the A/V R. and then to the TV via a different, possibly lower quality comp. cable?
Im a fan of NOT running video through A/V receivers if it is possible. If you have enough inputs on the tv, run the video separate. I think its a good idea. Leave the audio for the receiver. Cheers.
Most direct path is usually best unless the reeiver has better conversion/video reproduction than tv. Since you did not list equipment, I can not specifically comment on that issue.