Finally.... I just got component video working on my TV. Amazing! Absolutely better than S-video. I am soooo pleased with this.
Here are my details:
MAME 99b
MAMEWah 1.61
JVC AV-27530 27" non-HDTV
Sapphire Radeon 9600 Atlantis w/ S-video and DVI outputs
Clone ATI DVI>Component video dongle (eBay $12)
Latest ATI Catalyst drivers (not sure that this even matters though)
In testing this televsion as a MAME cabinet monitor I first simply hooked up the S-video cable. That was certainly easy enough and the picture was pretty good... but I knew that I had read about how a few people in the forums were able to get Component video working with this TV.
I gave it quite a shot last night but ended up giving up for fear of messing up something permanently. I had downloaded PowerStrip which is a pretty scary program that looks as if it has the potential to cause damage. But tonight I decided to try again... there was no need to install PowerStrip after all. It is not needed.
Here is what I did. I had my MAME computer connected to a regular PC monitor as well as my TV while setting this up.
1) Generated a "mame.ini" file by running "mame -cc" command.
2) Edited mame.ini file and changed "resolution" from "auto" to "640x480".
3) Hooked up my component video cables from my PC to my TV.
4) Set 480i dipswitch on the DVI>Component dongle.
5) ATI Catalyst Control Center on PC monitor:
a) Extended desktop to my TV.
b) Set TV sync rate from 60 to 30. Set colors to 16-million.
c) Set TV desktop resolution to 640x432 (this made no visible change in my TV display, which was SERIOUSLY overscanning probably by 50%).
d) Set TV as my PRIMARY display. This instantly altered my TV display to show my entire desktop with NO overscan.
e) Disabled my PC display
6) Started MAMEWah in 640x480 layout mode. Looked very good.
7) Started Pac-Man game. This revealed about 5% overscan vertically.

Entered Service Menu of my JVC AV-27530 TV:
a) Press "Sleep" button.
b) Press "Video Status" and "Display" buttons together. This enters service menu.
c) Located "V-Size" setting and changed it from "43" to "33". Perfect. No overscan.
9) Played Pac-Man in perfect size and crisp resolution. AWESOME!