A few days back, I upgraded my TV from a Olevia 1080i 32 inch to a Toshiba Regza with 1080i support on Component, and 1080p on HDMI. The first couple of days, it has looked just fine. However, it has been giving me this weird effect the last couple of days. I played Oblivion for a few minutes, and then the entire image makes it look like the game was saved as a 16-bit bitmap image after a few minutes. After that, it will flicker back and fourth from normal graphics and the messed up color graphics. Also, keep in mind that I am using component cables. Thing is, I am not sure what is causing it. This is a 360 issue alone. Wii and PS2 do not have that issue when hooked up with Component, and PS3 does not have that issue when hooked up to HDMI. This effect has happened before on my old TV, but never this bad nor nearly every time I boot up the system. Is it the wire, the 360 itself, or the TV reacting weirdly to the 360? I've been thinking about upgrading my 360 anyway to one of the newer models with a HDMI port, so I am curious about what I should do.
I sense a RLOD coming... If the PS3 and Wii are working both fine then the problem is definitely the X360.
I could try to hook it up on my other TV and see if that gets the same effect, although it would suck if a RRoD is coming, since I was planning to sell it on ebay to get a new 360. Edit: Well....Crap. I just tried it on the normal TV, and it gives me the same effect, so it isn't my new TV that is causing it. Its either the cable or the 360 itself, and I don't know where my normal composite cable is to test that theory.
this happend to mine about an hour or so before it died of the E74 error. If you do get that and your out of warranty then there could be a way to fix it yourself http://forums.xbox-scene.com/index.php?showtopic=484726