Why is my 360 dvd playback so bad? (vid inside)

To be honest the dvd playback with a vga cable will do me, and having one unit that does everything is what i need as space really is tight! I'm just playing lilo and stitch now and its perfect with no banding still using component, strange. There must be a reason why some have it and some dont.

Thanks for all the help guys :)

JAMAL
 
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