yeah just tried with a model 5501 ps1 and the component was a no go. the alternative route is to use a ps2 with component output and play your ps1 games. This way you get the benefit of the sharper video signal and 2 systems hooked up for the cost of 1 on your switcher.

your problem is most likely with the switch however. you could take it apart and clean contacts and check solder joints. Other than that, its best to just use anther switch. probably wont be worth your time and effort to send the old one back.