I'm currently using a monitor with a maximum resolution of 1680X1050 and have my 360 hooked up to it via VGA. For some reason, I'm able to set the resolution on the Xbox to 1920X1080 and when I check the monitor menu, thats what it says also. The image is fine so I'm guessing the monitor just resized the picture. What I'm wondering is if I can damage the monitor by setting the resolution higher than the maximum.
the 1080 may be interlaced, so is actually only 540.
I know that sounds weird, but theres some people who will know what I mean...
In short, nope.