Yeah. At least go for a $300 LCD EDTV. Component input is a huge step up from composite. Progressive scan is a huge step up from interlaced (standard) video. Those two alone make it better than a regular TV. I have a 20" LCD EDTV and games from all my consoles look amazingly good.
If you can afford the HD, then go for that first and foremost though. It looks even better.
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