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1) component like the it's name says sends each component (red, green blue) of the image on different cables.
composite, like it's name says, sends a composite of all the information one cable
you did not ask, but s-video uses the normal NTSC and sends on one cable a B&W (grey) image and on the other the colours.
2) any good cable is the same, so if you buy three RCA cables called component or three cables called composit it does not matter on the other hand there many cheap component and cheaper composite that that are not the same quality
3) if you look at cables that tend to come with equipment or that you buy at the store that have three cables attached (usually yellow, red and white)and one is composite and the other two are audio, then yes you can use them, but either all three cables are cheap or the two audio cables are cheap and no they will not be as good as component cables at any length because the audio cables cannot support the bandwidth needed for video
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