Just called Game Crazy and the guy on the phone said PS3 Slim doesn't do component, only composite and HDMI. Huh? Is this true?

no

It seems very unlikely, but Component is just marginally better than AV- HDMI is far above both.

Component is not just marginally better than composite... It gives much better colors and supports up to 1080p.

If find this hard to believe... perhaps it's because the dude you talked to doesn't know what he's talking about.

Well...off to Game Crazy! Trading in my 60GB for a Slim (it makes sense, it really does.) My 60GB had been getting really hot lately and goes into turbo drive fan mode after only 15 minutes of XMB (not even playing a game!) So I'm afraid its going to get the YLOD. Better to trade it in now and avoid that $150 repair, since the difference between it and the slim only comes out to be $140.

I would recommend selling it online if you could. You'd get more than enough money for the slim in return.

I agree on the quality.  I don't think the PS3 supports 1080p over component.

The PS3 doesn't ship with a component cable, you need to buy it.

it actually does.

Yes, you are both correct.  I thought there was some limitation with the proprietary cable.