Sorry for the new post but for some reason I am unable to add to my previous post. When I click on the "reply" the reply green box disappears and will not let me reply for some reason....lol
But In reply to Unreal Warfare in reference to the fact that the 360 does not have a 1.4 HDMI. You are right, but I found a 1.4, actually they don't use that discription anymore, it is a high speed HDMI with Ethernet. It was the cheapest cable I could find and they are all backwards compatible. Yes I know cheap is not good, but I wanted to see if there was any difference in VGA and HDMI and this was a three foot (1 meter) cable that I would not have used as a final solution. As I noted in my first post the picture was a clear as VGA the only difference I could see is the colors on VGA were more vivid....HDMI softer and to my old eyes a little faded looking, however I agree with most posters, it is in the eyes of the beholder which is better. As you can see just the opposite of your findings. Hey I haven't given up yet, I ordered a set of rocketfish hdmi cables from Ebay which should arrive next week....I know you will probably say I should have gone with Monster.....had them with my old Xbox 1st generation....and as far as I am concerned they are overpriced and overhyped. Have always had good luck with RocketFish accessories. I do agree with you about HDMI to DVI, have two cables one 1:18 and the other 1:24 which I threw in the back of my desk where they will stay until the wife makes me clean out the desk....lol
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No haven't had any problems with ghosting at all with either VGA or HDMI. But your systems or larger then mine. I have three monitors and have tried all three to come up with my findings. A Gateway which is 21 inches with VGA, Component, Composite inputs, A Samsung 22 inch with DVI and VGA which I tried the HDMI to DVI cables and the VGA Cable. I see some people have had good luck with DHMI to DVI cables, but not me, picture was not bad but not as good as VGA and I would have to reset to factory specs periodically as I would lose the signal and come up with sound and a black screen.
With my new monitor Del ST2421L ( a 24 inch monitor with full HD 1920X1080) I tried the VGA and the HDMI to HDMI High Speed with Ethernet (1.4) cable and as for picture the only difference was the VGA had more vivid colors, enough to be noticeable, but if I had only tried the HDMI cable I would have been satisfied. They were both very clear, no jaggies, ghosting, etc. Also when I connected the VGA it came right up to my native resolution of 1920X1080. When I connected the HDMI it booted into 480i but I was able to change it to 1080p with no problems. I think the last update really fixed the problems with VGA, although I have been using VGA for a long time with no complaints.
Now you have to remember I am using a computer LCD monitor with 5ms response (all three monitors are 5ms). You are using larger screens and they are TVs I think, you didn't mention that, but at 50 and 32 inches I assume that is what they are. I don't use TVs but common sense tells me that TVs are more likely to work better with HDMI which are more native to that piece of equipment, whereas VGA is more native to a PC Monitor. So I would think that in your case HDMI would work better. I prefer the crisper colors also which is why I am using VGA, some prefer the softer colors (faded a bit), guess it comes down to personal preference. Do you get ghosting from HDMI? If not I would go with HDMI. If you have been reading these forums or google HDMI vs VGA you will find or have already found that there is really no answer to which is better, depends on the equipment and personal preference, so like many have suggested try them all and chose which is best in your opinion.
Finally some posters flat say HDMI is better, some say VGA is better and some have even suggested that Component is better. But in the end you are the one that is using your system and whatever looks good to you is what you should use......There is a new setting on the 360 after a recent update that gives you additional setting, can't remember what they are called, it is under display......I'm not where I can look right now, but the three settings are Standard, Intermediate (I think) and Expanded. They have to do with the black levels. Standard is 7.5 which is what HDMI uses and Expanded is 0 which PC Monitors use. Are you setting your Xbox 360 to Expanded when using the VGA cabled and Standard when using the HDMI cable?
After googling I found that they suggest that you try all three to see which gives the best picture on your setup. I use Expanded. Hope this answers your questions.