PIP is sweet, so many different ways you can set it up. TiVo should do the trick. But there is no component input on the 2005, just a composite video, s-video and dvi.
I have it setup the following way. -- I have a Comcast DVR Box, Composite Video Out going into Composite Video In on the 2005. L & R Audio Out going into a Set of Powered Speakers.
Hope this helps. Anymore ? send em my way.