Yes, special cable is required to use Xbox.
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You should be able to tell by the slot that It plugs into.
The AV cable that comes with the PS3 is not for HDTV set up. You need to purchased a HDMI cable or a Sony PS3 component cable and then it should work.
No, a vga cable is not needed for the xbox 360. However if you would like to hook you xbox 360 to a computer monitor then you would want a vga cable.
Just because you dont have AV ports in your tv does not mean its old. You need to buy a AV Cable converter.
There is no AV-Out port on the E1000.