Originally posted by: klipschman
Alright so I now know that HDMI to DVI would give me the best picture.
Will the Xbox 360 display 1280 x 720 with black bars on the top and bottom of the screen over this connection? (on a 1280 x 1024 monitor)
I am using a HDMI to DVI cable on an HDMI Premium. There is a display option for 1280x1024, but that only applies to the dashboard (and even so, it looks a little scaled, I don't know).
Whether or not it runs at fullscreen 1280x1024, or letterbox 1280x720, et cetera, depends on whether if the game you are running has support for fullscreen resolutions. For instance, Forza 2 does not have that support (or at least, it doesn't for me), and it runs on letterbox, and the rendered image (not text, menu, etc.,) does look a little squished (for whatever reason; it really shouldn't because the width is not compressed at all).
Best bet right now, if you are going to be buying an LCD, is to get a 16:9 LCD, maybe a 24" that is native 1080p. Your Xbox may have a hard time rendering all that, thought (i.e., get hot, die).