What? Umm.. I've had VC games since launch and I never experienced a problem. I've also had the component cables since launch and yes, I've had internet since launch. >.<
...There was no problem for me. But then again I have a very expensive TV...
...
Upon further investigation I realise my TV fails to tell me the resolution it's recieving when playing VC games. It does this with 60hz GameCube games, too... strange. Regardless, the picture I see is perfectly useful for playing VC games. The TV can display the picture in either YCbCr or YPbPr modes.
100th post!