I'd go with the new Apple TV 2G. Sure it doesn't have component but it's easy enough to convert. The cables to do so run about $5.
Right now they offer more video support options on the original if you hack it but projects like aTV Flash (black) are bringing the same compatibility to the new 2G. At this point we'll likely see a stop in development for projects like that for the original and more people working on the newer model.
We'll also see Apple continue to add to the current. Sounds like apps for the new one are coming at some point.