I had the component cable hooked up to my hdtv and the graphics were good... bought this, set the resolution in the dashboard to 1280 X 1024, and WOW!!!! its simply amazing.
Dont even bother with the component cable in the premium package. With the MS VGA cable you can set the resolution in the 360 dashboard to the native resolution of your HDTV, so it doesnt have to upscale from 720P/1080i to the actuall resolution of the panel, you get perfect 1:1 pixel mapping.
With this cable, it adds more settings to the 360 menus. You can set the resolution in the 360 dashboard from 640by480 all the way upto 1920x1080).
Im assuming that all the people who are saying this gives a worse picture than the component cable havent been into the menu and changed it from its default 640by480 (VGA) to the highest res that there HDTV supports (thats 1080p :) - in your face sony).
If youve got a HDTV, this is a must have. Go buy this. Go buy this now!!!