They can be used simultaneously. I have both the S-Video & composite outputs connected to a home theater system & RPTV I use for demonstration so that I can show people the difference.
I also have both the digital & analog audio outputs connected for the same reason.
The difference between composite & S-Video is subtle during normal scenes but quite striking when there are color graphics or still scenes with color blocks. The transition from one color to another is noticably sharper with S-Video. It's easy to see if you "freeze" a scene in an animated cartoon, for example.
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