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Hi,
S-video cables have 2 signalling wires and send luminance and colour down seperately. Composite has only one signalling wire and combines the colour and luminance signals which are then 'un-combined' at the other end. Composited signals can cause them to interfere with each other, hence you get a better quality picture signal from S-video. Of course, S-video is a composite too, as the RGB in the colour channels are combined into one wire. Still, you get quite good quality from S-video.
Regards,
Elad.
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