People make it out like digital vs analog output is a night and day difference. I would be willing to put money on it that two displays side by side they couldn't tell the difference. A lot of depends on the quality of the monitor not just it's input source. You will still get better color out of a analog output on CRT than digital. HDMI 1.3 is getting a higher spectrum and future TFT Digital HDTVs may improve on this.
Isn't Digital Just Better?
It is often supposed by writers on this subject that "digital is better." Digital signal transfer, it is assumed, is error-free, while analog signals are always subject to some amount of degradation and information loss. There is an element of truth to this argument, but it tends to fly in the face of real-world considerations. First, there is no reason why any perceptible degradation of an analog component video signal should occur even over rather substantial distances; the maximum runs in home theater installations do not present a challenge for analog cabling built to professional standards. Second, it is a flawed assumption to suppose that digital signal handling is always error-free. DVI and HDMI signals aren't subject to error correction; once information is lost, it's lost for good. That is not a consideration with well-made cable over short distances, but can easily become a factor at distance.
So, which is better, HDMI or component? The answer--unsatisfying, perhaps, but true--is that it depends. It depends upon your source and display devices, and there's no good way, in principle, to say in advance whether the digital or the analog connection will render a better picture. You may even find, say, that your DVD player looks better through its HDMI output, while your satellite or cable box looks better through its component output, on the same display. In this case, there's no real substitute for simply plugging it in and giving it a try both ways.
 http://www.bluejeanscable.com/articles/dvihdmicomponent.htm
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