I have a plasma Samsung TV, 42", and I have this same problem. I see more detail, but the image is washed out. I can only adjust for Contrast and Brightness and everything else is greyed out. I assume it's because the TV assumes you can adjust that on the computer's end since the VGA input is dubbed "PC" input. Is there any way to bypass the greyed out areas and use 'em anyway? If I could just get to those settings, everything would be fine. I hate that they grey those options out.
I think if MS had an update where you can adjust color and stuff from the Xbox 360's dashboard, I think it could fix this issue. Anyone know if an update like that is coming? I also love that I can upscale my DVDs, but I just hate that the image is washed out. The higher resolution does help with making text smaller and sharper, but I HATE the washed out look. Anyone know if there's a work around? I'd greatly appreciate it.