My question is, If i were to get a HDTV receiver for my tv that is HDTV "ready" would that picture from my xbox come in anymore clearer than the Component Video cables that i am currently using or am i comparing apples to oranges?
I think it depends on what material is being used. For instance, if you subscribe to digital cable or satellite service, they transmit programming in standard definition (digitally) or in high definition (16 x 9 aspect ratio, 1080i or 720p), which is the 'clearest' signal. The picture from your xbox to your tv via the component cables is as clear as you can get.