1) Does the 360 have a way to connect video to the TV through HDMI but audio to the receiver via digital optical cable?
Yes, it does. This is how I used mine, and the best part is that it still sends the audio through the HDMI as well, so when I am not able to use surround sound (people are asleep or whatever) I just unmute my tv and turn off my surround.
2) If not, then do the Xbox 360 component cables have a jack to plug a digital optical cable to the receiver like the original Xbox had?
I guess this isn't really relevant because of the "if not" statement, but yes, it has that too.
3) Is there much difference in video quality between component cables and HDMI?
Can't answer this one, sorry, only ever used HDMI on mine.
4) Besides the 120gb hard drive, what is the difference between the Pro and Elite versions?
Well, when I bought mine, there was no HDMI port on the pro and the elite had a different mobo. Now I believe the only difference is the HDD and the color (black/white).
5) Is the Elite version a good deal for what it comes with?
Now since the pro has the HDMI port, I think it will come down to whether or not you really want the extra HDD space and the black box/controller. The only reason you would need so much HDD space is if you're a big downloader of the online content.
6) Can the Pro version have an HDMI interface? If not, which 360 have HDMI interface?
Yes I believe both the pro and elite have HDMI now.
7) Which ones come with an HDMI cable? Does the 360 use 1.3 HDMI cables? If not, then when?
Not sure if the pro comes with one or not, but I know that my elite did.
8) Can the Xbox use any HDMI cable or is it a special propietary cable that plugs onlyinto the Xbox?
It uses a regular HDMI cable.
9) Why would I need 120gb of storage space on an Xbox? What purpose would it serve?
As I stated before, the only reason you would need this is if you did a lot of downloading of the online content (movies/tv shows/demos).
10) Do the new Xbox systems still have the "ring of death" or any other issues I should be made aware of? Please list them?
I believe that issue has been taken care of as long as you are careful to make sure you get one of the newest models.
11) What is the difference between the 360 pro and the Halo limited edition version?
Nothing except the Halo version is ugly
12) Can you plug in an Ipod to get music off of the 360?
Yes, and the music can be played while playing games as well.
13) Can I transfer movies or music purchased through the marketplace from the 360 to any external harddrive?
No.
13) Do I need a cooling fan for one of the new 360s?
Like I said before, I'm pretty sure they fixed the overheating problems on all the newest models, and I don't believe the cooling fans did much good even on the old models.
14) How much do xbox marketplace points cost? What do things cost in the marketplace?
It's about 5 bucks per 400 points. IIRC (I'm not at my house right now) the movies go for about 800 points each.
15) How much free time on Xbox live do you get when purchasing a new 360 system?
I beileve the Elite comes with 1 month gold, and anything else only comes with silver, which means no online play, simply access to the marketplace and friends.
16) How much does membership on xbox live cost?
45 bucks for a year's service, and the prices go up slightly if you buy less time at once.
17) What's the difference between Silver and Gold membership?
No online play with silver.
18) What's the best and cheapest way to buying a Gold membership? I've seen those Gold membership packs at the stores offering 12 months of service. Is that cheaper than buying a Gold membership over Xbox live?
Same prices either way. The only difference is that if you buy the card from the store, you go home and enter the card number in on your xbox instead of just putting a credit card number in.
19) Is it cheaper to buy one of the 12 month membership packs than one of the 3 month live cards I've seen at Target?
Yes.
20) What is the benefit to buying one of those 12 month Gold memberships in the store than buying it online?
I guess the only "benefit" would be that there is no chance that it would automatically charge your credit card again. But as long as you actually pay attention it shouldn't do this without you wanting it to anyway. I will send you e-mails in advance of re-subscription.
21) Do you need a Gold membership to play friends online on some of those multiplayer games?
On all games online you need a gold membership.
22) What other equipment or accessories would you recommend when getting a 360?
I would recommend either getting a charge dock for the controller(s) or just some rechargable batteries. I got a pack of four rechargable batteries and I keep two in there at all times, so when my controller runs out I simply swap them and so on.
23) Does the 360 have a loud drive when playing games?
Not too loud, definitely not noticable while immersed in gameplay, but it is definitely no louder than the PS3.
24) Does the 360 play 1080p? If not, is Microsoft planning on realeasing a 360 that plays 1080p?
Well the thing is that the only 1080p media is HD disc content (BRD, HD-DVD). All of the games out right now are only rendered at 720p. The 360 can, however play 1080p content if the game supports it.
25) Can the 360 rest flat like the original Xbox? Is that a problem? I have a nice equipment cabinet and a standing 360 would not work.
Yes, that is how I have mine. I never set up consoles upright as it seems far too precarious a position
26) I read a few days ago about Xbox live issues that closed it down. There was something about it not being able to handle all of the new traffic over the holidays. Is that still an issue?
No, they have fixed that. After the holidays with everyone getting their new 360s, it took a big hit and went down a few times, but everything has been up and running fine ever since.
27) Are there any new Xbox system being released or upgrades planned for the near future? If so, what are they and when? Why should I get one now rather than later?
Not that I know of, and I doubt they are planning on releasing another console very soon.
28) Can the 360 play HDDVDs out of the box or do you need another piece of equipment to do that?
You will need the HD-DVD addon to do that.
28) Lastly, why should I get a 360 instead of a PS3? If you think I should get a PS3, let me know why. Does the PS3 play Blu-ray out of the box or do you need to purchase something else?
This really just comes down to personal preference and what you want. Neither console is better than the other, but each has it's own aspects that are better than the other's. If HD media is a big sell for you, you probably want to go for the PS3 as it supports BRD right out of the box so it would be the cheaper way to go. If your big thing is online play, you will definitely want to go with the 360. The PSN is by no means bad, but it's just not up to the level of sophistication and polish that XBL is, and 45 bucks a year is not a heavy payment. If you're not huge on online play and HD media will just be an extra perk and not really a pull, then it will come down to which system has the exclusives that you really want more. Check out exclusive games lists for each and decide which one has/will have more games that you will want to play.