I just got a component cable for my X-Box and PS2. I don't get picture when using the X-Box and I know it because it's trying to display in progressive scan. My T.V. can only do interlaced. Is there a setting on the X-Box to switch output to interlaced?
Also, check your cable type... I once bought a "universal" cable that would drop the sound from the PS2 if the Xbox was also plugged in. I ended up getting rid of that cable and just running my PS2 on component and my Xbox on S-video.
If you have a Target store nearby, they carry a Monster brand ps2/xbox S-video cable that can run both without degrading the signal. It might suit your needs if you're running an interlaced signal.
Use the xbox component cable. hdmi would only help if the tv was 1080p not 1080i. i have been told this by my smart gamer friends who would be able to explain it better than i have but i do know that im right and you should just use the xbox cable i just dont have the technical know how to explain it better. My husband just confirmed for me i'm right and i asked him to check his hookup guide for our ps3 and the difference between the cables and he said hdmi is best for 1080p not 1080i there is a difference, so do not waste your money my friend. My tv is high definition and 1080p and we have hdmi cable and there is a huge difference so if your tv is high definition and 1080p definately get the hdmi cable for it you will never go back. Then nice on the eyeballs you would get digital sound just not digital picture if you used hdmi with your 1080i....you may want to trade your tv for the high definition 1080p cuz xbox and ps3 rock with those tv's.