I don't have room for a TV; but I do have 2 23" monitors. I received a 360 for Christmas, and ordered a 360 VGA cable off of eBay. The quality was terrible; horrible ghosting, noise, and artifacts. The cable wasn't shielded and the sound suffered accordingly. I decided that if I wanted quality I'd have to bite the bullet and by a real cable. Now I play on my Xbox in full 1080p. Worth the money.
Although it is hard to tell from the picture, this is the official Microsoft Xbox 360 VGA HD AV Cable. You want this if you want to output to a PC monitor. Your monitor must support VGA input, so look on the back (it probably does).I have tried the cheap knockoff cable and it didn't work, so you WILL want the official cable.PLEASE NOTE: The VGA part goes to your monitor and gets you picture, but you will most likely need an RCA-to-Stereo adapter in order to get sound. Use this adapter (for the white and red..