For PS2 is it better to use SCART or Component?
I think I'm decided on using SCART for my SFC, as those HDRetrovision cables never seem to be in stock.
Another question is whether or not audio goes through SCART, like in HDMI, or do I need a separate cable for it, like in Component?
Khaz' comment still stands inclusive of component as an option.
Scart. You always choose Scart.
However, if you already have a component cable it will be close to RGB. It's depends on your setup and what you want. On a 12" screen some may not notice the difference. It is there but people's "image quality threshold" I'll call it, can vary drastically.
You'll need RCA to BNC adapters if you want to connect the YPbPr cables to the PVM BNC connectors.
The HDRetro cables just came out, and quickly sold out. I read somewhere (in here?) they may not make anymore (speculation though at this point I think).
Audio will go through SCART. The SCART-BNC cable I linked to has R, G, B, Sync, and L&R audio.
However, keep in mind that PVM you were looking at is mono only (not stereo). So you'll need to figure out something else (e.g. receiver, PC speakers etc) should you want a better audio experience. You can always just connect one channel (L or R) or buy a 2-1 Y connector but you'll still only have the mono sound. Isn't this pandora's box fun to open!
edit, looking at the manual again, the audio inputs are mini's so you'll need an adapter from standard RCA type audio cables to a headphone jack connector should you plan to run audio through the PVM.