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To be honest it makes so little difference it's not worth worrying about. You could argue that XGA is marginally better, but seeing as you have to pay extra for the cable it's not worth it.
I'd say it's more important to get a good quality HD display with a fast refresh rate (for LCD) like the Samsung range which has a built in gaming mode for 8ms refresh designed specifically to work with 360's (the logo for the 'games mode' is a small 360 gamepad).
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