XBOX 360 AND VGA (and crap a$$ game mode)
FIRST OFF -- I feel very safe to say the Sammy HL-S 1080p DLP sets and the XBOX 360 are a match made in heaven ... REALLY.
For those in doubt or whom have been misinformed, the Sammy HL-S sets and the 360 using VGA looks fan-f'n-tastic.MS had released a patch/update only a week after the 1080p update to fix the washed out look of the VGA ... and it has done a fantastic job.
IMHO
-VGA looks just as good color wise as the component (and I find actually more accurate)
-VGA is MUCH MUCH sharper in a good way over component. I really find it to give it that sharp edge, BUT AT THE SAME TIME ... gets rid of some jaggies that some games show. Oblivion is a good example ... ridges on building and stuff as well a bump map cuts are much nicer with VGA.
-VGA can be scalled to ensure you get either no overscan with a small black boarder or I scale to have no black boarder and lose no info (did the graw HUD outline test)
- Another advantage of the VGA is you get you games at 1080p, your HD-DVD add on at 1080p (VS 1080i) and all your DVD's upscalled to 1080p (VS 480p) .. and yes, you do not need the HD-DVD drive to get upscalled DVD's ... it is the brains of the box that does the upconverting ... not the drives.
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If you're still skeptic .. buy a VGA cable, keep receipt, try it, if you don't like what you see (but you will) ... return it.
BTW, I use the same setting for VGA as my other stuff. VGA will not give you access to all options, but this has never affected me in a negative way. And I am not the only one with this mind set. I have converted many to the VGA when using the 360 and have received ONLY POSITIVE and THANKFULL replies.
"VIVA LA VGA"
PS .. now you will have an extra component connection now as well ..

And IMHO avoid game mode .. it looks like $hit. It was ment to help with lag ... however the only lag I have ever experienced was when playing older 480p games and the TV has to work hard at upscalling.
GAME MODE = SUCKS (but who cares .. it is not needed with todays consoles)