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If I switch my 1600x1200 high quality LCD monitor from VGA to DVI the improvement is very obvious. The VGA image looks good but it's a whole lot sharper with DVI. At that end of the market top quality analogue CRT monitors and graphics cards often had separate BNC sockets rather than a d-sub15 connector. This must have helped minimise the quality loss in the interconnect.
At 1024x768 on a 17" display there should be no problems with analogue interconnect unless the cable is horrible quality.
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