I feel like an idiot. My Xbox 360 seemed blurry on my 25.5" monitor that's 1080p capable and 2ms response. I thought it was the Xbox/HDMI issue. I was looking into digital audio and, when looking up info on it, realized Xbox's have the switch on them for HDTV. Switched it on, bam, HD in 1080p. I'm so glad I didn't buy another Xbox.
MW2 looks so much more awesome now, but digital audio is next! Though, wish I had surround sound earphones. I'm using headphones(Sony MDR-V6), and hopefully the computer can make it sound better(with straight stereo, I have trouble locating sounds).