Youtube App on Xbox 360 no more 1080p only max 720P !

the max resolution of the xbox 360 is 1080p, when it first released it was 1080i, you will not get higher than 1080p, most of the games ran at 720p upscaled too.

The Xbox 360 does support 1080p output over component, but far from all TVs accept resolutions higher than 720p/1080i that way.

Beware though that only a handful of games support 1080p natively, most target 720p and get upscaled. The same goes for video apps - Zune supports 1080p natively, but the other apps are limited to 720p.

But the improvement over a standard composite connection is substantial either way.

Just choose 720p, since the 360's auto leaves a bit to be desired. The 360 may have selected 1080p because your TV probably accepts a 1080p signal, but downscales it to 720p. Since most 360 games run at 720p, that is your best option. Leaving it at 1080p
means the games will have to be upscaled from 720p to 1080p, only to be scaled back down to 720p by the display. Doing that can only cause harm, to the picture quality.

@Ascenion Again most games on 360 and PS3 are sub 720p and upscaled. X1 and PS4 are 720p native and up. You asked for better and its right there in the pudding. I also doubt 1080p@60fps will be the standard at the end of these consoles life as devs try to
squeeze more performance out of these consoles once they're maxed out.

@ZWR63, I hate to break it to you but you were had by Microsoft, the very first Xbox's 360s were able to do 720p,/1080p 99.9% of games are only 720p. The xbox 360s (slim) on the shelf right now still only do 720p in 99.9% of games and are for the most part
incapable of doing 1080p. Really all it did was fix the RRoD problem.