I have a 1920x1200 24" monitor. I recently changed from HDMI to VGA since my monitor and my 360 were having major handshake issues resulting in blackouts every tens seconds. VGA has been pretty nice, the colors aren't as crisp and it can seem a bit washed out, but its so minimal I dont even care about fixing the HDMI issue anymore.
 
But I was running it in 1920x1080 for a while and I kept noticing some overscan. I adjusted the settings a lot, H position, clock, ect. but the picture always seemed to be a bit larger than what it should be. I googled and a few people sad it might be because the 360 upscales natively 720 games to 1080. So I changed the setting to 720 on my 360 and no overscan at all, the image fits perfectly now.
 
I'm wondering if running at 720 will hurt the image quality of the games I am playing. I cant tell the difference so far. I was swtiching in Tales of Vesperia from 720 to 1080 back an forth and couldn't see a difference. It shouldn't even matter since these games run at 720 natively. I'm just curious if anyone else has a say, I mean if the picture quality is better in 1080 I can deal with a touch of overscan.

Unless your screen size is over 35" or so, you shouldn't notice any considerable difference unless you sit pretty damn near the screen. It'll look awesome either way =]. 
 
I'd say on 24" you'll notice no difference.

Some people get too hung up on the numbers.  Since 720 looks just as good to you and gets you a better image fit, then use it.  I use 720 on a 42'' TV for all of my games, and they all look great to me.  Don't worry too much about what others say is best.  Just do what works best for you. 

I've spent some time with 720 and in games I cant tell the difference but that might be because I cant switch between them quickly (1080 vs 720 I mean), but the dashboard is noticeably better, at least my background is. I have a 1080p res wallpaper as my background and it looks sharper when I switch to 1080. But I dont care if the dashboard looks better, I've checked online and I dont own any 1080p native games. But does it look better upscaled by the 360? I have no idea or way to compare them side by side. I'm more curious than I should be as I dont really care if the games look better to be honest. I just want to know how 360 games are handled by the 360. Now since the 720 requirement is gone, and Halo 3 was already sub 720, I am more curious. Do the games look better if in native 720? does the 360 upscale them better than my tv?

But does it look better upscaled by the 360? I have no idea or way to compare them side by side. I'm more curious than I should be as I dont really care if the games look better to be honest. I just want to know how 360 games are handled by the 360. Now since the 720 requirement is gone, and Halo 3 was already sub 720, I am more curious. Do the games look better if in native 720? does the 360 upscale them better than my tv?

" I have a 1920x1200 24" monitor. I recently changed from HDMI to VGA since my monitor and my 360 were having major handshake issues resulting in blackouts every tens seconds. VGA has been pretty nice, the colors aren't as crisp and it can seem a bit washed out, but its so minimal I dont even care about fixing the HDMI issue anymore.  But I was running it in 1920x1080 for a while and I kept noticing some overscan. I adjusted the settings a lot, H position, clock, ect. but the picture always seemed to be a bit larger than what it should be. I googled and a few people sad it might be because the 360 upscales natively 720 games to 1080. So I changed the setting to 720 on my 360 and no overscan at all, the image fits perfectly now.  I'm wondering if running at 720 will hurt the image quality of the games I am playing. I cant tell the difference so far. I was swtiching in Tales of Vesperia from 720 to 1080 back an forth and couldn't see a difference. It shouldn't even matter since these games run at 720 natively. I'm just curious if anyone else has a say, I mean if the picture quality is better in 1080 I can deal with a touch of overscan. "

You should actually be running your display at 1680X1050 since that is a 16X10 aspect ratio.  Try it and your problem should be solved. "

" @cspiffo said:

You should actually be running your display at 1680X1050 since that is a 16X10 aspect ratio.  Try it and your problem should be solved. "

Ah, true.  I was misreading his resolution, that should help his display quality over 720p or 1080p output, at least with most monitor scalers. "