To begin, I have a 27" Daewoo flatscreen, which comes standard with an S and Component input in addition to 2 other AV inputs for composites or other electronic devices.
We all know the difference between S and Component, S separates the RGB and audio bands, but puts all of the RGB in a single connection with separate connecter pins. The component breaks down all the RGB into single inputs, hence one for red, one for blue, and one for green, in addition to left and right audio.
So, does it make a DVD/PS2 game look that much better/different? Believe it or not, YES, it does, quite noticable. The colors are richer, the images are sharper, clearer, and it cleans up darker scenes with better line definition. It works very well and does exactly what it advertises. Is it work the $30? No, something this simple really shouldn't cost this much. Sony is to blame. But if you are truly that critical of movie viewing and the difference between stock and component cables is compelling to your eye, by all means, buy it. IF you have extra cash to spare, that helps too.