You're kidding right?
Have you ever seen the difference between the VGA signal and a digital signal from the Xbox 360? Hell, even the difference between the Component HD cable and HDMI is very noticable.
Oh believe me, I know HDMI is the best way of doing things provided you have that option (HDMI on my PS3 looks fantastic compared to the component cables.) I'm just saying that a thin crappy VGA cable is going to be a blurry mess when you compare it to a higher quality cable.
This brings up something puzzling between my TV and my Acer monitor. On my Acer, if I use VGA (my good thick cable), it looks great. If I use DVI, it looks almost exactly the same.. but text seems somehow.. harder to read. They look as though they have outlines or something. It's weird.
On my TV, I use a VGA cable from my PC to it. It's a 40" Samsung TV running at 1920x1080. If I use a DVI to HDMI cable I can connect using HDMI.. but it looks outright disgustingly horrible, and I can't for the life of me find out why. HDMI looks just fine with the PS3....
The screen is all dark and the text is nearly impossible to read (Yes i verified it was running at 1080p).. strange, no?
Well I've learned to accept it. So I dont mind it now. Though I dont think it was worth $40.
A person said the only reason why i dont get a good display is because my monitor is an Bargain Brand. Oh, well. Good thing I'm not one of those gamers that plays the game for graphics.
I doubt it would look any better on a better monitor, it's jaggies, after all. Like I said, if you're running your monitor's native res, then the 360 is doing all the scaling work, not your monitor. You could try setting it to a 16:10 resolution closer to the original native of 720p so that the monitor does the scaling instead, might look a tad better.
This might not apply, but when I forced my Acer to a higher res with the PS3 on it, it was a bit blurry, whereas when I let the Acer do the scaling it looked much better. PS3's built in scaler is so bad.