>Might seem like a strange questions, but...

Not strange at all.

>What are the benefits/downfalls to developing classes/business objects using component classes vs 'straight' classes? [Especially for use in the middle tier].

Look at the Component class hierarchy for the benefits:
1) MarshalByRefObject semantics. This is exactly what you want for middle tier remoting.
2) implements the IDisposable pattern.
3) Component designer design-time behavior (makes a surface at design time that you can drag stuff onto)

>
>Is their additional overhead involved with component classes that might hinder it's value?

Of course its heavier. I figure the benefits far outweigh the extra bulk. The additional overhead increases your business object's value because of all the extra services that the Component class provides.

Object creation in .NET is actually a very speedy process. Its the garbage collection process that is expensive.

http://msdn.microsoft.com/library/default.asp?url=/library/en-us/cpguide/html/cpconclassvscomponentvscontrol.asp