FarFarAway
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Found a good link for the question here
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link said:A. In general VGA and component are about the same in terms of picture quality. However, if you have an HDTV that only accepts a 1080i input signal, only the component connection will work for you. The 360 will not output a true 720p or 1080i HD signal over VGA, only computer resolutions of 640×480, 848×480, 1024×768, 1280×720, 1280×768, 1280×1024, 1360×768 and 1920×1080 (progressive). In most other cases the VGA connection provides more options, especially when viewing movies on DVD or HD-DVD.
Quite a few others say the same too