Do you get any color bleeding on the dashboard? The red "A" button (displayed at the bottom) has some ugly bleeding horizontally. I haven't noticed this in any games, and I don't think it was there when I was using a VGA connection to the Acer 22" monitor. (Now I'm hooked up to the Samsung 23" TV with component cables.) I think it has to do with adjacent color fields being the same intensity, or brightness. Maybe red is a bad boy, as with NTSC? Don't know that much about it. I also know (now that I've been reading up on this) that VGA is component plus H Sync and V Sync lines (5 wires total), so it really should be no worse as far as display quality.
Edit: Oh, and when I was using the Acer, I had one PC connected through DVI-D and the other VGA. The difference was very noticeable, but then again, the res was a lot higher (1680x1050). There was some ghosting on the VGA connection, probably due to the switchbox and the high frequencies needed for this res. Pixels looked sharp, until you switch over to the DVI image. Those are sharp as tacks with absolutely no spurious crap anywhere.