I don't have a camera or a PS2.
BUT, when I got my monitor I used the component connection to see if there is much difference between it and VGA for my Xbox 360. The VGA pwned the component connection. The only positive thing about the component connection at the time was that as I remember instead of getting the two options of Full and 1:1 that I get with VGA (or HDMI/DVI) I was having in the place of the 1:1 another option named Original. I don't know about the name, but what it did was correct aspect scaling as far as I remember. But since I have the 360 at 1080p I can use the VGA 1:1 and still get the same result only with much better picture quality throught the VGA. If you have the PS2 then just try it...not that hard.
Ah I see. I'm waiting to build my office desk before I hook up the screen, so I can't check it right now. I had plugged my PS2 in at Best Buy on their display monitor and couldn't get aspect scaling working correctly, but I'll report back when I have my setup complete. Thanks for the info!