Finally getting home theater, couple of beginner ?'s

[Steverhcp02]

So i have my PS3 and my HD TV, ive never been huge into audio as far as surround sound goes, but im thinking of finally taking the plunge.

My question is, to take full advantage of HDMI, my TV has a single HDMI port, as does the PS3.....to get the full advantage, do i need to find a reciever that has both an HDMI input and output.....to run HDMI from my PS3 to receiver to TV? Or can i substitute Component somewhere along the lines and still experience the advantage of HDMI?

My TV has 3 component inputs, so there will be no worries.

Basically, if i run component from my PS3 to receiver and then HDMI to my TV will i gain any quality over only using component, or will i need to run everything through HDMI?

Thanks in advance.