System Compatibility
You can use either the composite cable or an HDMI cable with both original Xbox 360 and the Xbox 360 S. At the time of publication, new Xbox 360s comes bundled with the composite cable by default; an HDMI cable must be purchased separately. Although you can use composite cables with your HD television, you cannot use an HDMI cable with your standard television.
Video Quality
With an HDMI cable, your Xbox 360 can display high-definition video at 1080p, creating a crisper and more detailed display than composite video. If you're using composite video with a high-definition television, you may find that the display isn't as clear or vivid as devices that use component or HDMI; on a standard-definition television, you will not notice this difference.
Composite Setup
The Xbox 360 uses a special composite cable -- one end is specified for the Xbox 360, a large metal end shaped a bit like a rectangle with the shorter sides tilted in. Plug the metal end into the back of your Xbox 360. Connect the composite end into your television. The television should have color-coded ports that correspond to the plugs at the end of the cable.
HDMI Setup
Plug one end of your HDMI cable into the back of your console and the other end into your television. The Xbox 360 will automatically detect the best resolution when connected via HDMI. Microsoft offers an Xbox AV kit that includes an HDMI cable and an HDMI audio adapter. However, HDMI cables are standardized. Any HDMI cable will be compatible with your console. Your HDMI cable will transmit both audio and video to your television. The Xbox AV adapter allows you to route your audio to a sound system separate from your television.