well heres my 2 cents...
My friend recently bought an Xbox Elite and a Samsung 32" HD TV. The tv runs a a native resolution of 1366 x 768 (i think) which is 720p
So we are setting everything up in my friends room and he is connecting all sorts of gizmos to the tv like a Wii, PC and old PS2 aswell so we have a plethora of cable to play arround with so we decided to carry out a few tests.
First we thought we would hedge our bets and use the HDMI cable for the 360 as the newly added port was bound to satisify our needs so we connected it up and everything looked "ok".
Dont get me wrong it was not a bad image in the slightest but just lacked that oomph that we were expecting.
Next we tried a 360-VGA cable that my friend had also got and connected it to a VGA port on the TV when we connected it up we were able to go into the settings and actually choose the resolution we wanted to the xbox to run at. This was not possible when we were using the HDMI cable.
So we set the 360 to run at 1366 x 768 and fired up a game. THE DIFFERENCE WAS AMAZING. Everything was so crystal clear and sharp edged. Even colours that had previously appeared flat now were showing continous colour variations etc. We were slightly surprised by this and tested it out on several games comparing the cables each time with the results occuring.
The only conclusion that i can come to is that when using the hdmi cable the xbox was trying to force the tv to run at a non native resolution and then screwing things up that way (possibly making it run at 1280 x 720 which is another 720p resolution)
Here im jsut guessing at the reasons but i deffinately would reccomend that you use the VGA cable to connect to your TV if at all possible, that way you can be sure of waht resolution ur pumping out.
*** EDIT *** i just realised how long this post was lol