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I have 2 HDMI cables for my TV (one for my PS3 and one for my Xbox 360) and they both cost about $15-20 and I've never experienced any problems with them. I'd be wary of trying any HDMI cable under $10, but if I tried one and it worked fine, I might buy one.
Like people have said, HDMI is 100% digital, so all the audio and video is included in one cable (which looks kinda like a USB cable). Component consists of about 6 different cables, which are all analog I believe, but component can get quality that is pretty close to HDMI. But right now HDMI is the highest definition format out there.
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