Yes, you can buy a VGA cable and connect it directly to your monitor. Some monitors such as the Dell 2404 allow for Component Connection rather than VGA.
If you don't wish to keep swapping between PC and Xbox360 you can buy a KVM, the D-Link one on OcUK is perfect (£50).
You will need an audio input capable of handling optical in (the Logitech Z-5500 speakers are a perfect example).
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