What is the best connection interface here to play computer output onto the television screen? RGB vs. S-video?
Out of the two, go for the RGB (Component) video-out. If your Computer has a DVI output and your HDTV has DVI or HDMI inputs, you can connect from DVI to HDMI or DVI to DVI as well. Enjoy the wonders of computing on a large screen! Just make sure to set your computers resolution closest to your HDTVs Native Resolution.
What about the audio side of the computer interface? Can I for instance play a CD on the HDTV? I looked and do not have a DVI output on my computer.