VGA to Composite or HDMI for quality retention?

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I'm guessing although vaguely video game related this might be the best place for this question...

So, I'm well into my retro games, and have purchased some funky bits of gadgetry which 1) converts RGB SCART to VGA, then 2) upscales to 640x480 then 3) adds Scanlines using a SLG3000 which makes the output look loads better and much more like we would have been used to back in the day on a CRT...

Anyway, my issue is that my TV doesn't have a VGA input (Its a Sony KDL42W829) so I need to either convert my VGA to Component or HDMI.

So my question is from a technical point of view (hence posting here) am I better staying analogue and converting to Component (which I'm assuming with the right box running the right algorithm should be relatively lossless since its just maths?) or do I go digital and throw it straight into HDMI?

Just want to retain as much of the quality that will have been injected by using the hardware upscaler and SLG, shame to lose some at the last hurdle because of a missing input!

Any advice?
 
So SCART -> VGA -> Upscaler -> SLG3000 -> and then to something for your TV?

Seems quite a bit of a mess personally :p. I think the cheapest option is a VGA to component as a VGA to HDMI adapter will be pretty expensive since it needs to actively convert the signals to digital.

However, what about the sound? VGA doesn't usually carry sound...
 
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