HD movies can be found on Netlix, and/or Zune. Just make sure your account on those two sites... has the video output to maximum quality. (HD)
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An Xbox 360 is capable of playing HD movies as long as you have an "Xbox 360 HD player." The Xbox 360 itself can be viewed and played in the HD content. You will need some HD equipment which includes a HD TV (some will say HD ready - meaning 720p, others will say full HD - meaning 1080p). After getting a TV, use a HDMI cable to link your xbox to the TV. This will now show you HD. Any video game can be viewed at the full 1080p HD.
In order to get High Definition gaming You need an HDMI cable and a HDTV/ HD Computer monitor.
Yes with a HD and the backward compatibility update
Not as good as you would have with an HD TV, but graphics will be slightly improved from the original XBOX. In my opinion.
HDMI stands for High-Definition Multimedia Interface which is a cable you can use to play game in HD 720p,1080p and 1080i on a HD full TV or HD ready