HDMI Definition
HDMI stands for High Definition Multimedia Interface. An HDMI cable is capable of transmitting digital HD video and digital HD audio over a signal cable, as opposed to the multiple colored cables used by component and composite video. When it comes to visuals, HDMI cables are capable of transmitting video at a resolution of 1080p at 60 frames per second, the highest resolution and frame rate supported by the PS3.
HDMI vs. Component
Component cables, on the other hand, transmit an analog HD video from your PS3 to your TV through three separate cables -- two for color and one for brightness. While component cables can transmit video at a resolution of 1080p, they're often limited to 1080i and, even when they do transmit video at 1080p, the process of converting the HD signal into an analog signal means that there will be a slight dip in picture quality.
HDMI vs. Composite and S-Video
Composite and S-video cables are both standard-definition cables, placing them in a league below HDMI cables. Both are analog connection types capable of transmitting a maximum resolution of 480i. Using a composite or S-video cable is recommended only if you don't have a HDTV.
Enabling HDMI
To get the best possible image out of your PS3 system, you must first enable the HDMI connection. Plug one end of the HDMI cable into the HDMI port on the back of your PS3 system. Plug the opposite end of the HDMI cable into the HDMI port on the back of your television. Press the power button to turn off the PS3 system. Press and hold the power button. You will hear one beep when the system turns on, and a second beep about seven seconds after the first beep. Release the power button after the second beep. Press the "X" button on the system's controller to confirm that you want to use the HDMI connection. Press the "X" button a second time to save the settings.