Let me guess that the component out is 480p, which the TV can display but which the AVR recognizes as no video at all.
I ran into a similar thing with a Philips DVD/VCR once. We had to rout DVD video differently from VCR video. RTFM and/or tell us the model of the DVD/VCR. When something squirrely is going on, often ALL model numbers matter.
A good answer is easier with a clear question giving the make and model of everything. "The biggest problem in communication is the illusion that it has taken place." -- G. “Bernie” Shaw