are you sure about composite by passing the PAL/NTSC issue?
Not
composite video. Composite is the video signal fully encoded to NTSC or PAL standard, pretty much exactly as it would be applied to a TV transmitter for broadcast.
But
component video does indeed bypass the NTSC vs. PAL color encoding issues, because instead of using a single connection for the whole video signal as composite does, it employs three separate connections to send the red, green, and blue signals which comprise the picture separately (either directly as RGB or by what are known as color-difference signals, Y/Pr/Pb or Y/Cr/Cb).
So when you connect by RGB or Y/Pr/Pb, the only factor is whether the TV can lock to the slightly different scanning rates for the two different systems to give 30 frames per second of 525 lines each (American) or 25 frames per second of 625 lines each (British). Just about all modern digital/LCD/plasma sets will do that. There might be an odd one somewhere which doesn't, but it would be rare.
Note that S-video is
not component video, and connecting by that method
does require full NTSC or PAL compatibility. S-video sends the luminance and chroma parts of the signal over separate wires, but the color is still NTSC or PAL encoded.
If so then would the HDMI not do the same?
Yes, HDMI will also bypass NTSC/PAL coding, once again just leaving the issue of the different horizontal & vertical scanning rates. As digital sets with HDMI interfaces are all pretty much designed to accept about a dozen different formats for "normal" definition, high definition, computer display, etc. they'll almost certainly all work.