Yea, that's basically what I'm doing. Trying to get the best picture I possibly can with a ps2/1 light gun. Component might work since they did make Ps2 component cables, but I don't know how the Guncon would go into it with the AV part.
Dreamcast Lightguns don't even have a yellow AV plug, so they might even work with component. Although I haven't seen any CRT with a component in it. Just S Video.