It's hdmi that is the problem. I use the 360 vga cables to hook my 360 to my 36" pc monitor and I run the audio out of my surround sound. Today I had to put my 360 on my hdtv through hdmi and got the sound bug. So I ran a few tests and found that if I ran my 360 through component or vga it was fine. The minute i switched back to hdmi I got the sound bug. It has something to do with hdmi. I have no clue what though but that is the problem. Someone else try this to help confirm it. I did not try composite cables yet.