[quote name='Trocar']The HD drive connects to the XBox 360 via USB cable, right? Is there any loss of signal this way, and are you better off just buying a standalone that has direct HDMI to the TV?[/quote]
From what I have heard, there is no loss as far as the USB connection from the disk to the system. Now, out of the system will matter. Right now all I have is component so I am sure I am not getting the true HD of the HD DVD. Once I upgrade the TV, then it will shine.