So using the vga cable the xbox will give me the option to go hd ?
YES! Look, here are your options and instructions so we can keep the forum members sane.
There are four options of audio/video:
COMPOSITE - 3 Cables (Yellow, Red, White) - Official Xbox 360 Composite Cable
COMPONENT - 4 Cables (Yellow, Red, Green, Blue) - Official Xbox 360 Component Cable
VGA - 1 Cable - Official Xbox 360 VGA Cable
HDMI - 1 Cable - Official Xbox 360 HDMI Cable
You have a CRT TV which will only support Composite and/or Component. Component is the better option if your TV supports it. Plug whatever colour wires are available using whichever cable is needed. Now, the Microsoft Component Cable includes Composite wires which you leave hanging. i.e. NOT PLUGGED IN. Only LCD TVs or computer screens will support VGA and only LCD TVs will support HDMI but not all of them do. Images of all the above cables can be seen on the following site:
http://www.zaps.co.za/?sm=578. The composite cable cannot be bought separate but is included, as previously mentioned, with the component cable.
This is all the info you need.