Component video will do 720p, have to use hdmi for 1080p. If your current tv would happen to not have hdmi, don't let that be a deterrent from you buying. I would say that if you can squeeze your wallet hard enough to come up with the money for the PS3, go for it. Myself, I went the Blu-Ray player route, because we have the other 2 game systems (Xbox 360, and Wii.) For internet connection speed, you're going to have to find out what you CAN get, post that info, and see what experiences others have had with that level of service.