I do not yet have an HD T.V., and playing PS3 games on an SDTV is rough, since its hard to read alot of the text on-screen.

My question is this, do 360 games look like poop on an SDTV as they do in PS3? Or is the 360 a little more forgiving in this area? 

There are some games that have the same text problems on an SDTV. But you should be able to minimize the problems by doing some things.

How are you connecting the PS3 to your TV? Component, right? As long as you aren't using composite, you're doing something to increase your chances of readable text. If you are using composite, then you need to upgrade your cables.

What FJ said. As long as you have component cables, you'll do fine. I will say, if you have a VGA connection on your HDTV you buy, it will look great.

I'm using S-Video, actually.

Will component work better, as far as readable text?

Big time. S-Video is sharper, but component is much, much sharper.

Check out the chart:

I was going to suggest RGB scart as a happy medium, but its a euro thing I believe.

One more question.

Does 360 offer bluetooth? So that I could use my Jabra with the 360?

 no, you HAVE TO use their headsetjust like you HAVE TO use their hard drive no matter what.

Lame. :(

Misinformed much? u don't have to use a MS headset , only if u are refering to the wireless version. Other than that any wired headset as long as it has the same size jack (cell size) it will work.