u can run in widescreen, 1280x720. depending on what monitor u have, u can choose to maintain the aspect ratio and have black bars on top and buttom, and possibly round the sides

highest is 1360x768 thru vga

Does it do true widescreen like 1280x800 or similair, does it maintain aspect ratio?

Do you guys think it would be better to run the Xbox 360 at its native 1280x720 and have the 2407 stretch it all the way up to aspect, or set the 360 to its highest vga resolution, 1366x768, thus sharing the scaling among the monitor and the 360?