I currently have my XB360 hooked up to a Sony receiver that upconverts 720p into 1080p or can take the native 360 1080p signal and outputs it via HDMI, using this set-up, would I see any difference if I got a HDMI equipped XB360 at all?
I am not sure if this is what you are asking but the non HDMI 360 can output games at 1080p over component - I am doing it right now on my HC4900 projector. The 360 will not output HD-DVD's at 1080p over component but will output them at 1080i over component.
You will probably not notice much of a difference between component and HDMI.
If I understand the OP's question, it's whether HDMI has significantly better PQ than component. From how the OP has described his set-up, HDMI and component would be running through the same scaling processes.
The quick answer: the difference depends on your set-up and how discerning you are. I noticed a pretty dramatic difference between component and HDMI. Others note nearly no difference.
The other question (which isn't really posed as a question) seems to be whether his AVR does a better job of scaling 720p to 1080p than the 360. But it doesn't sound like a question, and the answer is simply to use your eyes and see if you notice a difference. You also might run into greater AV lag if you have the AVR do any video scaling.
I switched from a launch 360 to an elite and to me, there is a difference using HDMI. Not a big one, but some. The colors were more vibrant and the sharpness was better. If your Sony receiver is only component in and HDMI out, then forgetaboutit, not worth it. If you have HDMI in and have the extra cash, might be worth it.
Also, your TV size matters. If your using a 32" HDTV, don't do it. I'm running a 120" HP screen and right off the bat I noticed the difference. If you have a friend with an HDMI out 360, ask if you can try it on your system.
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