I once used a VGA cable from my 360 to my 19" Sony CRT and it looked very good, but there is only one thing to consider: If you play it in high definition resolutions you'll get black bars at the top and bottom unless you have a widescreen monitor. That got on my last nerve so I took them back. Oh and about sound, I have Logitech Z-5500s and the official cords come with a little splitter that you plug into an input on your speakers so I just plugged it in to the side of my control pod and the red and whites went there and boom, Sound. May be harder on some of the cheapest of speakers with no inputs on them.
Most speakers don't have RCA (the red and white cables) inputs but you can get convertors to a standard 3.5mm jack no problem.
urgh. This is starting to sound annoyingly complicated. There aren't any red / white cable inputs on my speakers :(
If you buy the official Microsoft cable there is a little splitter that you plug into your input and it branches out and gives you a red and white plug for the audio.
ah, ok. Guess I'll get that one then. Thanks.