The same thing happens on my TV in my basement. It says it can handle progressive scan etc. The cables work fine on 480i; it has better clarity and color, but when you go to the Wii's options and try to switch the system to 480p, (for me) the screen goes nuts with flashing bars and it's distorted. Still, I DO think that when the component cables are put in and the Wii is used on a component channel, it does a pseudo-HD picture. I was just playing a part of Endless Ocean today, and my God, the screen was VERY clear and vibrant.

 Yes it looks alot better, but I think it will go much smoother in 480p (other refreshing mechanism if i'm correct)

Still happy about the purchuse though. Nintendo answered me back and began with 'Best Nintendofan' :)

Examined the tv manual today and it says that the component entrance is used for videorecorders. 

In a section with RGB entrance it says that its used for gaming/recorders/etc. so cleary there is some differences in uses for each channel. 480p channels on my tv would only show it with videorecorders. 

A question much alike:

I have my Wii with component cable hooked to my HD screen. Wii settings are set to 480p. Everything works perfect with Wii games, but with my VC games the screen starts to go nuts.

Any idea? Are VC games not compatible with progressive scan?

Initially, some PAL Virtual Console games would not display correctly on high-definition televisions when connected via the component lead. However, starting with the April 13, 2007 update of the PAL Virtual Console, certain newly added games, such as Punch-Out!!, support the "Wii Component Cable Interlace mode." This is a temporary fix to problems with various Virtual Console games being played over component cable on HDTVs. The mode can be enabled by accessing the operations guide of the game, and (with the Nunchuk attached) pressing the buttons Z + A + 2 simultaneously. A sound is played if the mode is enabled correctly. Several older games also have updates available to enable the feature, such as Super Castlevania IV. The mode can be disabled by using the same method, but with the button combination Z + A + 1 instead. A full list of games supporting this mode is available at nintendo.no [62], an English version can be found at vc-forums.com[63].

If you still have trouble read this and watch the movie (het is in het Nederlands:))

http://wiimii.wordpress.com/2007/05/04/virtual-console-en-480p-gaan-al-een-beetje-samen/ 

Slash: Tnx alot.

Nederlands is geen probleem.

Weet ik

Your TV must have progressive scan for the image get normal. That happens to me when I play Gamecube games that don´t have progressive Scan, than I switch off PS on my TV and play normaly.