Yes. Component and VGA use two totally different colorspaces. You can look them up on howstuffworks.com, but basically component throws out the color green entirely, which comprises 52% of a color signal (which is why a digital camera has two green CCDs for every red and blue CCD) and then the display reinterpolates the lost data. VGA in the RGB colorspace retains all three colors and is why some people find it to be preferable. On the 360, it also uses different color palletes for both connections, but that's a different story.