I have my Wii hooked up to a 65" HDTV via component cables. The Wii doesn't support optical out (which really sux). Only the old style Red/White analog outputs. Old school Dolby Surround is the best you can hope for (not digital).
Also, keep in mind the max res a Wii can do is only 480p. Games will look a little better, but not "great" like they do on a true HD console (like the ps3/xbox360).
You'll also notice jaggies WAY more than you did before... SSBB almost looks grainy on my new tv due to the Wii's weak resolution output.
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