This means that if you input something that is not comonent video, you must output that format..

Example: If I plug in my cable box via composite to the DAV-X1, then I must run a composite output to my TV, regardless of the fact that I have the DVD player built-in to the DAV-X1 hooked up via component video. Although many systems are capable of upscaling and transcoding a composite source to compnent or HDMI, yours cannot.