I think there is encryption issues or the like over HDMI thats why I suggested a HDMI to composite YPrPb converter, but if its only short cables, I wouldnt have thought there would be a noticeable loss in quality from converting to an analogue form and back to digital and its still HD!
Try getting the correct terminology - it is an HDMI to component
converter (NOT composite) you should be referring to. Component video is capable of carrying HD video signals , composite video is NOT and is just above RF analogue in terms of video quality (i.e. the second lowest quality).