Major Nelson is saying that the mandatory Xbox 360 update does the following:
• Improved support for HD video output over VGA, including 1080p resolution
• Improved plug and play performance for wired headsets when being used with wireless controllers
• Changes made to recently played games list to improve accuracy
But, be warned — some 1080p users have been having issues with the dashboard update. Apparently, it renders VGA cables useless by making the video non-existent. The audio is still there, but playing games blindly isn’t exactly easy.
I have also been pointed in the direction of this solution. It is basically a way to reset your display settings to default without having to look at your TV. Hopefully, none of you run into this issue. But if you do, please keep us updated.
Remember, this is only an issue with TVs that support 1080p. As long as you didn’t throw away your component cables, those will still work.