Why squeezed down to 640x480? And what's the trick here? I bought a 37" TV two years ago that has VGA, HDMI, and DVI inputs, and it cost 400USD. It does 1360x768 native. Cheaper now for something bigger; much cheaper for something smaller.
I mean, come on, my laptop and netbook have HDMI and VGA out; hell, even my phone does! This is easier than hooking up a VCR.
In my case.. we've had a $400 PC hooked up to the TV for ~5 years. Only reason it cost that much is because we play games on it. WoW, Starcraft2, Portal, .. Zelda64 :) etc etc. We don't have cable, just Hulu and the greater 'net. It's our DVD player, and we end up ripping most of the kids' DVDs to xvid anyways so we don't have to worry about scratches. Then there's Boxee, MythTV, XBMC, take your pick. Remote control, wireless game controllers, yada yada. Oh yea.. all on Ubuntu, and the wife uses it?
It's no secret...
Did I mention I'm typing this post on the TV.