the closer it is to the native resolution of the LCD, the better. anything else means scaling, and scaling always results in quality loss. in your case, a VGA cable would be best, since you can set the 360 to 1366x768 in VGA mode.
About to buy a VGA cable, but was just wondering, once ive got the cable, how do i select 1366x768
Also, is it worth spending the extra cash on an OFIICIAL Microsoft VGA Cable or will a ebay cheaper job do just the same?
if its a digital signal will it matter?
Cheers in advance