Well now, this is VERY interesting...
I have hooked up the 3 component jacks for HD output/input on my TV Drive and TV. The results are amazing! Before, even the BBC HD demo channel was fairly poor through the HDMI cable (I tried 2 different quality ones as well but with zero difference!), but now the image is STUNNING through component.
Just the other night, BBC broadcast Kill Bill Vol1 on HD and the clarity was utterly BREATHTAKING. Even my wife commented on the picture when she walked in the room and this sort of thing just does not light her fire. Even on none HD transmissions, virtually all the blockiness has gone, except for when you get really close and the flaws due to the standard picture quality are apparent...which is to be expected as per the previous post.
So, in conclusion, there must be either a fault in Telewest's software that compiles to HDMI/SCART, or there are subtle differences to that software between Telewest and certain brands of TV manufacturers. I can't say I'm too bothered as I find the component conection more than satisfactory! By the way, surely the HD Component connections are still digital and not to be confused with the older yellow/red/white component connections which are analogue. The colour code of the HD components are red/green/blue.
RESULT