QUOTE ("That Webpage")
These high-definition component to DVI adapters are the ideal way to adapt component-video-capable DVI ports to standard 3-RCA component video ports.
The wording is a little confusing, but what this is saying is that it will take the DVI
output of say a video card and convert it to component video
out.
The key words are "component-video-capable DVI ports." If you don't
know your monitor is component capible, I would not buy this cable.
I'm gonna get off on a little nerdy lecture here, so bear with me...
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As with any new technology it's important to maintain a certain level of "backward compatability" with the old technology. In order to use DVI you must have a video card with DVI out and a monitor with DVI in. That means that when DVI was new manufacturers either had to force consumers to buy both a new video card (or a whole new computer) AND a new monitor, or implement both DVI and the old technology (VGA) at the same time. That is why it is so rare to find a monitor with a DVI port but no VGA port, but is so common for monitors to only have a VGA port. This is all well and good when you have a lot of space to work with (the back panel of a monitor), but doesn't work so well when you have very little space, such as the back panel of a video card. So what video card manufacturers did was invented a way (with magic I believe) to send EITHER an analog VGA signal OR a digital DVI signal with the same port. In order to use DVI you would just plug a DVI cable directly into the dual use port, but in order to use VGA you have to use an adapter. I'm pretty sure this adapter works without any microchips, it's merely a very short VGA cable with a plug that looks like a DVI plug.

Also, as you're probably aware, you can take an analog component video signal and convert it to an analog VGA signal (just so long as the monitor you plan to hook the VGA to has "sync on green" capibility). This conversion can be done without any processing or chips (AFAIK). I don't know if you can convert it easily in the other direction or not, but it's clear that the 2 analog signals (component and VGA) are very similar. The cable on that web page is pretty much 2 adapters in one, it's a DVI look-alike VGA plug with the output wires adapted into component video plugs.
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So, long story short:
even if it DID work you'd get the same signal as you would have through a VGA connection, but instead you'd be using an expensive cable...
One thing about converting (with pretty much anything): unless you're doing it to avoid some kind of interferance you can't get "better" quality by converting. You can't get the audio off a cassett tape and "convert" it into CD quality audio, all you'll get is "CD quality" crappy audio tape sound. If you're looking to get the best quality out of your 360 use the Microsoft branded VGA cable.
Sorry to make this post so long, but I feel explaining things greatly inproves both believability and understanding.
You can bet that the VGA cable is putting out the correct aspect ratio, if it looks funny on your monitor it's probably because your monitor is "scaling" the correctly formatted video to fill your screen. Unfortunately, since the monitor is doing this, it's pretty likely that you cannot fix it (without using an external "scaler box").
I can't help with scaler boxes (thank god right?), but there is lots of info on this forum about them, which one is better/cheaper/compatible/etc. I guess the Vdigi is actually a "transcoder," I don't know what this means exactly, but it's aparrently that means it's better than just a "scaler."