I tried an unpowered HDMI splitter just to see how it would work. In my case one TV would work fine by itself but the other TV would only use the signal when the other TV was on. Your MMV and another option may be to get an HDMI switch. The switches though may only be able to be used one way, like two inputs and one output instead of one in and two out as you need, and probably would only work with one input or output at a time. The other thing I've heard is that a splitter may cause you to lose HDCP compliancy which may or may not be a problem.
Ah, forget the switch, your best bet is to get a powered splitter like this.
http://www.monoprice.com/products/pr...mat=4#feedback
and now I see that is the kind you were looking at. It should work but
mine is cheaper unless you need a third TV in your bathroom.
As for using component cables, this is what I do for a second HDTV from my 9242 and I don't notice any degradation (it's only 30" though). I even have my 9242 in single mode, connected to a third HDTV in the bedroom by co-ax, of course that won't be HD but I sometimes use it to finish watching a show that's been on pause or a PVR recording. Anyways I have three HD boxes so i don't miss much if I want.
Component can do at least 1080i and the only limitation that I know of is that some older and cheaper HDTVs may have cheap parts and won't accept an HD signal over component. Your LG should be fine.