Thanks for the advice. I may upgrade my player one of these days. THe models that you mentioned are very reasonably priced (especially compared to my first player which I bought for $400 in the summer of 1998 which had no component out, progressive scan, or DTS output).
It's nice to know that I don't have to worry about 25 foot digital cables. My video card has dual DVI-I which, if I am correct, can output either DVI-A or DVI-D.
Most of my downloaded content isn't Hi-Def (350 MB AVI files for 45 minute shows and 175 MB AVIs for 25 minute shows) so I don't know how much of a difference I'd see with those files by upgrading my connection from S-Video to Component or HDMI. I have a couple of HD downloads (700 MB for a 45 minute show) but I am having trouble getting the sound to play. I think it's because they have AC3 audio. For some reason the center channel is cut out so I get all of the surround effect and music with no dialogue. It's probably just a local setting I need to change. Maybe once I get that issue worked out I would get more benefit from an improved connection.
Finally, as far as "low-grade DVD with the annoyances of compression and jaggies" goes, I have a very hard time thinking along those lines as I am a DVD addict and have a collection of around 1700 discs. I need to continue thinking that standard DVDs are awesome for quite a while longer in order to maintain my sanity.