Well, Chaos Theory is probably the best looking XBox game out there...it would look pretty damn good on anything. Heh. Also, the difference between 480p and 480i is more noticable on big screens (I'm not sure what size TV you play on, but that could be a factor). As for the 16 : 9 ratio, it's generally considered more cinematic and more appealing visually. It's not a necessity by any means, but once you get into all this stuff, you can't go back...graphics whore or not.
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