QUOTE(prism_emf @ Sep 20 2005, 02:43 AM)
You guys are forgetting the one thing that actually matters here. The Xbox only plays back audio at 48 kHz, while CD audio is 44.1 kHz. Everything gets resampled and that will affect playback quality *measurably*, instead of only in your mind like switching digital cables. There's no way around this, it's a hardware limitation.
It's a no-brainer to acknowledge that CD playback is not xbox's forte, due to the digital resampling prism mentioned.
I can't find a good reason not to playback DVD's on the xbox though, since the audio is native 48KHz, and the 480p (or better) video output can compare to some of the best DVD players around...