Thinking of getting a Xbox 360, but i have one question

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With the recent price drop on the Xbox 360 I am now very tempted to pick one up. I will be connecting it up to my PC monitor which is a Benq FP241W. I have three connections available to me on this monitor, HDMI, S-Video and Component. I would also like to run my sound through my X-Fi card on my pc so I can use my headset with it. This sound connection will have to done via an optical connection. As far as I can tell this can only be done on the Xbox from the connection that isn’t the HDMI one.

Basically what I'm asking is will I suffer a loss in resolution or image quality by using this component connection over the HDMI one?

If I would lose image quality or resolution can I run the picture through HDMI and the sound through the other connection at the same time?
 
Ah right, Thanks for the info guys.

I have to go into my local store and get them to open the box as im not sure what is included as standard in it. Some pics on the web show the item that smokedog posted as included and some dont.

At least i know it is possible now and i wont have to buy a TV as well :P
 
You should get pretty much the same picture from component and HDMI.

New Elites (stupidly) don't come with HDMI cables any more, therefore you'd need to pick one up. A lot of places are throwing them in anyway, but don't get scammed by them telling you that you need to pay £15 for the best connection, it doesn't work like that. You should be able to pick one up online for a few bob.

Yeah, i always lol at the £30 HDMI gold plated cable's. I'll hopefuly be picking one up this lunch time. £240 for an elite, halo 3, fable 2 and 12 months of xbox live. Sounds like a good deal to me ><
 
Thanks for the info TheCybermonkey. Im the only person who will use this xbox so only having one pad isnt a problem for me. Also one of my friends has an old style cable that does have a optical out which he is kindly giving me. So i should be sorted on that front. the only extra things i will need is a HDMI cable if one isnt supplied and a longer optical cable as last night i found out that the one i have is only 60cm long.
 
Well i got my Xbox yesterday and i picked up the HD VGA kit and a optical cable today. However i cant get the sound to work through my X-Fi card. When i start up the 360 i can see the green bars going up and down in the vista sound pannel but no sound comes out of my headset. This still still happening when i start up a game. Does anyone know how i can get the sound to work?
 
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