Originally Posted by Dimethios
This is how I have mine as well, is it incorrect?
It's a non-standard way of getting there, but probably looks fine if your display is flexible enough.
Games are native RGB/expanded. Video is native 709/standard.
HDTVs are built for 709/standard, monitors are built for RGB/expanded. Nowadays there is precious little difference between a TV and a monitor, and most HDTVs are flexible enough to support monitor specs.
So 709/expanded is a weird combination that isn't true to any source. But the video chip in the 360 can convert to whatever with little degradation, so it barely matters.
You could make a solid argument either way that RGB/expanded or 709/standard is "correct" for games on the 360.