Audiophiles. God, I love those guys.

From a review of the HD-DVD drive:

"HD DVD supports a maximum resolution of 1080p - and the latest Xbox 360 firmware update adds support for this. In addition, you can also choose to downscale to 1080i or 720p if either's the native resolution of your TV. For HD output you'll need either a component-video or VGA cable - unfortunately there's no HDMI cable for the Xbox 360. While this isn't a huge problem at the moment, it could cause issues in the future."

I run mine through the VGA port and have no problems with it. Plus, if you're running any sort of home cinema set-up, sound really shouldn't be an issue. Even through the VGA port, the quality is stunning.