I am playing my Xbox 360 on a projector with an LCD that runs at a resolution of 1366*768. Currently I am using the included component cable to run at 1080p. I don't quite know how this is possible given the 768 but I believe the controller for the LCD can scale it down. If I jump to HDMI will the output look that much better at either 720p or 1080p? The controller is HDCP compatible so I am not worried about that. Granted the image I'm playing on is about 7 feet diagonally so I assume it will but is it worth the upgrade? The resolution will be the same so how much difference can it really make?
If anyone has an experience with the increase in quality feel free to say so here.
Additionally, even if I use HDMI I can still select the sound to be in 2.0 correct?