VGA output on the xbox isn't that hard. It's a matter of converting the component video (HD) signal to one a VGA monitor can understand. Component has 3 connections - Y,Pb, and Pr. Y is a combination of luminosity and the vertical and horizontal sync signals. Pr is the difference of red from the overall screen luminosity. Pb is the difference of blue from the overall screen luminosity. Green is whatever is left over after taking out blue and red. the sync signals can be removed with a sync seperator chip (which cost about 5-7 dollars, or many companies will give you a free sample). A VGA monitor expects Red, Green, and Blue, with each channel only giving their total luminosity. Some monitors support sync-on-green, which removes the need for a sync seperator to connect to that monitor.
The conversion of the colors can be achieved either with a circuit (like x2vga or
Ken Gaspar's VGA circuit - about $10 or $20 to build), with a special bios (such as iND-BiOS 5001 VGA - compatible with xboxes 1.0-1.5), or with a patch to nkpatcher (
for softmodders)
It's not hard. It's not expensive. And you can get VGA output in any of the HD resolutions if your monitor supports them.