My reason for this is, I want to use my modded xbox. (mostly because of the quick boot/shutdown times, and because XBMC is a great piece of software). The xbox can put out standard def (composite), or hd (component, 480i, 480p, 720p, 1080i). It would be great to be able to use the component.
The input on the 740bt you're interfacing to, what is it exactly?
I'm considering developing an interface between a touchscreen (theoretically any touchscreen) and an xbox (or any computer), to be able to truly emulate a mouse (writing drivers for the xbox/xbmc isnt fun from what i hear...)