Xbox 360 / Component / VGA / z5500 Question

Hey everyone,
I will be connecting my Xbox 360 (Premium) to my monitor in a few weeks, and my monitor supports both VGA as well as Component-In/Out. Which provides better quality - VGA or Component? My monitor can do 1920x1200, so it should be able to display up to 1080p content.

Also, I have a Logitech Z-5500, so what is the best way to connect it to my Xbox 360?

Hopefully this will be my last cabling-related question for a long time!

Cheers!
Kirupa :beam: