Hey everyone, I went out and picked up a VGA cable to see what the new picture on movies would look like. I set my resolution to 1280x720 to get a 720p pictures. However, when I go to settings, I get this message before I go in and change the resolution:

"You must connect an Xbox HD AV cable to configure HD settings"

From that message I get the impression that the XBox 360 isn't running in HD (720p) despite what my resolution settings are. Am I missing something? Maybe it's just me, but the 720p previews that you download seem a little hazy to me now with the VGA cable when they seemed a lot cleaner when I had component cables running. The movies look great, it seems as they look significantly better, but other thinks look somewhat worse. Are my eyes playing tricks on me, or am I missing something?

Thanks everyone for being such a huge help!

EDIT:: I just put in Ghost Recon. It definity looks somewhat hazy, no where near as crisp as it did with component. What gives?

I use VGA cables to connect to my monitor... never saw that warning before, but it seems like a generic one. I'd output whatever is the native resolution of your TV/monitor, though. If you don't know what that is, try different resolutions out to see which ones are best... my monitor is closes to the 1366 setting.

The differences in perceived sharpness can be a bunch of things: edge enhancement done only for the component inputs of your TV, or perhaps different calibrations for different inputs. There will be a slight change from component to VGA, but I don't think it's that noticeable.

Ian, are you connecting it to a computer monitor? Try the auto adjust button. I find that always seems to sharpen up the image for a VGA connection...

I have my 360 hooked up to a projector via a 6 metre cable. VGA looked crap. From a distance it looked like it was blurry, but on closer inspection I saw it was ghosting the image. I changed to a component cable and everything it sweet now. Same length of cable. The VGA cable was a 6 metre Belkin VGA extension cable, and the component is a 6 metre Avico (or something) cable. Neither are very expensive.
I've also noticed on my Dad's PC setup, his 19inch TFT has ghosting when hooked up to his VGA splitter box (not amplified). I would chalk it down to the 360 VGA signal needing to be stronger over a distance than the component signal. Or maybe a VGA signal by nature is more prone to needing amplification than component??