What do you mean by "bad"? You mean a lot of aliasing, or "jaggies" as they are commonly referred to? Or bad as in blurry character models and hard-to-read text? One answer I can supply for you is this. If you are using HDMI, that is you problem. The 360 was not made to use to HDMI. HDMI is limited to short range color on 360. The 360 was designed to output an analog video signal. When they added the HDMI port, they basically just put a VGA+sound ~ HDMI converter inside the Xbox (figuratively or course). The added sharpening you're seeing is a byproduct of this extra DAC step.