It would only be an improvement if the game would increase the resolution as well. But it's still 1280x720 (= 720p) pixels even if you play at 1360x780. It's only upscaled ("stretched") to fit the TV's resolution. Same if you play at 1080i or p. Always the same resolution of the game itself and therefore no real improvement in visual quality.
It's really just a matter of who scales better.
And that's why you're right, change the settings of your 360 to better fit to your TV can certainly improve the image quality if your TV handles some resolutions better than others
It's really just a matter of who scales better.
And that's why you're right, change the settings of your 360 to better fit to your TV can certainly improve the image quality if your TV handles some resolutions better than others

Can you elaborate on that for me?
Why is it that 1360x780 looks better then 1080p?
Is it because my TV set scales it better then what the Xbox can 1080p?
As I said earlier, I've no idea with these things. I just know what looks best for me and what doesn't.
How do you know what your tv's native resolution is? I have a 32" LCD vizio an on the front of the tv it says 1080p full hd in the corner can you guys help because I'm using the red blue an green cables right now but I'm getting a hdmi cord here soon. So how do I know what best fits my tv?
1080p means 1920x1080.
That's what mine is native to at least. Your TV manual should say.