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Might be reading to much into this one. If the Xbox 360 v1 really could get true HDMI or DVI out, it would be done by Microsoft already. No one from Microsoft has ever really confirmed it, but since a new SKU was launched using slightly different hardware you can bet that v1 Xbox 360’s can’t output digital.
This “cable” seems more to be really more of a VGA (or Component) to HDMI/DVI transcoder that just happens to be built into a dongle on the cable itself. You can already do this today with a number of transcoders. The only problem is that they tend to be expensive.
The real question is can this XCM company produce it at under $100. Most transcoders go for at least double that, generally triple.
This is going to be a workaround, not a great solution for getting HDMI out of an Xbox.
Chris