Buy a new DVD player? Seriously, you can get name brand DVD players with component outputs, progressive scan capable, play mp3's, dvd+-rw discs, etc. and about a billion other features for like $50 (e.g. panasonic). It would probably cost you more to get something to take Svideo and make it component, not to mention for the cost - you're not going to improve the quality since svideo has less colour separation than component/colour difference video.
You can even get $200~ DVD players that have VGA and DVI outputs and will even upconvert the 480p signal to 720p or other arbitrary resolutions, plus be region free and have no macrovision (e.g. momitsu, skyworth, bravo do some or all of that).
I mean, if you want the technical challenge, have at it - but how much money is your time worth when you can easily buy a new DVD player to do what you want already? Unless the DVD player is really old, most players already have component out unless you bought an utter piece of shit anyway (for like $20 less than something decent maybe?).
RGB mods for consoles or console cables which never offered RGB output originally is far more worthwhile way to spend hardware tinkering time IMO.