Right now my Wii is connected through the front L2 input on my DVD player/recorder. The input on my Sony WEGA for the DVD allows letterbox (16:9) on that input (used for animorphic widescreen DVDs normall). If I have 16:9 turned on and have my Wii running in Widescreen mode, is going to give the same thing as the component video out?

I just ordered a component cable from Nintendo to hook the Wii up to another television, but I will hold off physically moving the Wii there if I'm essentially getting component video output as it is connected now.

(I know this is kind of a "duh" question, but I have never been sure how that 16:9 setting working in comparison to a component video cable or if there even is a difference.)

With the component cable you'll be able to switch the resolution to 480p instead of the 480i that you're getting now. I just helped a friend connect his with component last night and it looks much better than it did without it.

Does the Sony only have a single component input?

If you're trying to letterbox games on a 4x3 set, don't bother.. it's not worth it.

My Sony Wega had one component, but of course, without the benefit of progressive scan mode it's basically an unnoticeably minuscule improvement from s-video.