My idea was just to get something better then composite
Yes, of course! Composite is the worst signal you can
get ;o)) A lot of people propagate S-Video (Y/C). While
it is better, it still has it's limitations. One of the problems
is that Y & C are seperated. What's the problem? Well
you have to make sure that the Y & C lines are the same
length. If they are of different lengths you will be inserting
a different delay in Y & C, which may quite well result in
a picture which is worse than composite.
It got better with S-Video, but not as good as using component with my
DVD. Using vdrconvert to export the film to DVD+R discs looks like the
alternative right now.