PC-to-HDTV Digital Connection over Component?

Hi Guys,

I have:
- XFX GeForce 8600 GTS video card
with 2 DVI ports, 1 7-pin S Video port
- Vizio GV42LF 42" 1080P LCD TV

What I ultimately want to do is connect my PC to my TV.

The best picture quality solution, as I understand, is to connect a DVI to HDMI cable from the DVI port on my video card to the HDMI port on my TV. However, I was hoping to avoid using up one of the two HDMI ports on the TV, and one of the two DVI on my video card. A previous very similar video card I had, had the same 7-pin S video port and it came with an adapter that allowed for a component connection.

I've done a lot of reading and as I understand it, generally component is analog and DVI/HDMI is digital. However, supposedly digital can be sent over component (?). Where analog component is YPbPr, digital component is YCbCr. My TV I believe takes either and I think my video card sends either.

I want to know, can I connect my pc using the 7-pin S video port + a converter from 7-pin S video to Component + a component cable to my TV's component in.

Is this set up (7-pin S video, Component Adapter, Component to TV -- all digital) possible?
If so, do I need to specifically get digital component cables?

Please let me know if I'm crazy or misguided.

Thanks, any advice is greatly appreciated.

Most video boards only allow for 2 monitors whatever the outputs used so I don't know if you will actually be saving an output for another monitor. I use 2 monitors, a 26" TV and a DLP video projector with 2 video boards (one PCI-e and one PCI as my pc doesn't have two PCI-e slots) and use DVI and VGA as needed.