I would definately recommend using a HDMI cable if your TV has HDMI
Personally, i buy cheap HDMI Cables (a couple of dollars off ebay) they work fine for me, no problems
Be aware, HDMI Cable prices are the biggest retail rip-off (i had a customer who paid $200 for a 1.5 meter cable… insane)
Here’s a article for some light reading
http://reviews.cnet.com/2719-11276_7-226-3.html
P.S. If you decide to get a Component Cable for the WDTV Live, be aware the WDTV has different pinouts compared to a standard cable… but there is a workaround
