you've been hanging out at the ps3 forums too much if you think the 360's catch on fire... they dont. xbox 360 looks fine in component or VGA whichever you choose, i use VGA with a monitor since i dont have access to a HDTV. Widescreen monitor or TV is recommended tho for the best experience because everygame is made for widescreen and some games have issues displaying in non widescreen (16:9) resolutions. i run mine at 1280x1024 but its only a 4:3 19inch monitor but vegas does look fine and it puts widescreen bars so the game doesnt stretch.
If graphics mean alot to you go with the 360 because the 360 has the best graphics out right now and PS3 can't compete with its first gen games vs 360's second gen games...
And if your thinking about longterm graphics... the PS3 has a potentially faster processor but the 360's graphics card is better then the PS3's, and last time i checked graphics cards are what make the graphics good
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