I'm not a guru for anything, I'll just share my experience about this matter:
Some time ago, with a Geforce 8800 GTS (it died, so I can't do tests anymore), I could make it work in Win Xp with any cable, including component. When I migrated to Win 7, it was only possible with the composite cable. I tried to get support in the official nvidia forums, but it never worked for me. I think it's funny to see people taking sides in debates about nvidia vs Radeon drivers, when in my point of view, both are shit. Some blame it on the new (not new anymore) Microsoft driver model... but it's unbelievable that they can't (or don't want to) make it work...
But component output is hardly the best option for a cabinet anyway... I've a 29 inch 15hz Wei-Ya arcade monitor (looks very good but scanlines are hardly visible in this particular monitor, there are others that are better), that was very cheap and a 30 inch VGA monitor (got it very cheap also). Funny that between both, I prefer the image from the 30 inch VGA monitor (using scanlines via artwork system, since I couldn't make the scanlines scale evenly through HLSL at 640x480)... Now I'm searching for a multisync arcade chassis to have the best of both worlds.
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