1) I'd use S-video, but make sure you get a decent cable, since S-video carries an analog signal.
2) Definitely. With component cables, you can display in 480p widescreen. That should be reason enough to get them.
3) With the X360 Core, the best thing you can get is component video, which is a borderline-necessity for an HDTV owner. If Halo 3 looks amazing to you now, wait until you see it displayed in 1080p widescreen. :)
4) I'm not sure, I'm afraid.
5) HD television channels only display in 720p, true. However, your X360 (and PS3, if you own one) can also display in 1080p for most games.
"'Casual games' are something the 'Game Industry' invented to explain away the Wii success instead of actually listening or looking at what Nintendo did. There is no 'casual strategy' from Nintendo. 'Accessible strategy', yes, but ‘casual gamers’ is just the 'Game Industry''s polite way of saying what they feel: 'retarded gamers'."
-Sean Malstrom
