No do not do it that way. HD-DVD will not upconvert standard DVD via component, only via HDMI. Cable is only 1080i at best, if going to use component use it on the cable box and run a red/white analog for audio to TV and a optical or coax to receiver for surround sound. Run the HDMI to the receiver from the HD-DVD player and HDMI from receiver to TV. You could also go HDMI to TV from HD-DVD player and use a multichannel analog connection for audio. The MC analog or HDMI should yield better sound quality from the HD-DVD over a typical digital connection but the optical/coax will work, you just get a slightly improved version of Dolby Digital or DTS. The higher resolution audio has to come from the first 2 audio connections mentioned MC/HDMI.