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[twistedsymphony]

have you enabled the line out port on your laptop? in most cases it's muted by default.

as for auto switching the audio, short of a custom built solution there really isn't one (unless the X2VGA supports it, I don't know enough about it to say).

sometimes you can run the audio lines together but in my experience products that sit in standby wind up muting the product you're trying to use. I know the PS2 and Xbox1 both do that and I would assume at least your 360 and probably the laptop as well.

I'm sure you could find an auto switching audio solution but they can be pricey.