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If your standard analog 32" TV has component cables, I assume it will accept progressive scan input from your DVD (if your DVD has progressive scan output). However in general the signal received through non-progressive-scan componet is a better signal (color separation, contrast, etc.) than s-video (which is much better than standard Coax).
On the other hand a mid-sized set such as your 32" may have too small a screen to be able to tell significant difference between S-video and component. The larger screens magnify the video line separation and therefore resolution quality becomes a significantly higher concern.
Another consideration is how you are using the system. Does your video signal from your DVD go through your A/V Receiver-Amp? If so, the type of switching your A/V Receover-Amp offers (Coax, S-video, Component, etc.) may determine how you hook things up.
In general go with the method that offers the best video signal and these video connections are as follows from outstanding to fair: DVI (digital video interface), Component/Composit (progressive scan), standard Component/Composit, S-Video, and finally standard old Coax.
disclaimer: the above is the opinion of David H. Herndon
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