I've been having the same problem with the hdmi periodically cutting out, but I believe it is a software problem. When they rolled out the HD package a few months ago my TV would do this every other day, sometimes multiple times a day. After a few of the firmware updates it has gotten much better. Now it happens 1 time every few weeks so I believe they have nearly solved this problem.
EDIT: I forgot to add, on my TV component cables give a noticably lower quality picture compared to hdmi on any setting. Maybe it's just my TV, but comonent is not an option, I want the best picture.
DCGTLS- I recommend using the coaxial connection for the best sound. I've tried hdmi, optical as well, but the coaxial seems to give the best quality sound on both 5.1 and regular non surround formats, and many of the HD channels don't have 5.1 so it's a good mix.
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