What exactly about HDMI is better than Component?
You can find the spec everywhere on the Web, showing why HDMI is better than component (bandwith, color space, etc.). But i am sure this is not what you want...
In Videos DVD, HDDVD or blu-Ray, the signal is digitally encoded.
On the other side of the path, most of HD displays are digital. When you use analog connection (aka VGA or component), you have to perform on your source device an digital to analog conversion and put the signal on your cable. Arrived on the display device, the signal have to be converted back to digital...
When using DVI or HDMI, you never perform these conversions. The signal is simply "packed" ala TCPIP from one device to the other. The fact is component have the bandwith to deal even with 1080p but with good cable, HDMI suffers less loss on the signal.
If you have "poor" quality source (XBox360, PS3, ...) and a limited in size display ( <=32'' display), its difficult to see a difference.
But if you :
- Use a high quality source (aka HTPC, high end DVD player)
- Use a big screen (i don't know how you translate 2.40m basis to inches)
Believe me, the difference is visible even for newbies.
Go look at AVS forums and look the ratio between digital / analog signal users.
PS : its a whole discussion, and i am not quite sure this is the right place ...