My component cables were like three bucks and they work great, it's risky but generally worth it and I've had them for like a year.
I either got them from dx or mono price.
My personal fix for h264 videos is to use a lower resolution, the less lines you show the easier it is on the cpu, Netflix itself seems to only go up to 512x384 when running the video test.
It's a cheap way but it works well if you don't want to just 'hope' the video won't desync. Because no one has bothered to look for the best settings for WiiMC and even baseline would not work 100%. If you get any more specific then you're gonna be missing out on most of the compression options and end up with a file bigger than the source.
So, 512x384 for 4:3 and 640x360 for 16:9