PC TV Tuner vs. Scaler - Recommendations?

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My DYI projector is up and running, although like many i'll be tinkering with it for a long time. In the meantime I'm trying to get Cable TV and more importantly my XBOX up and running.

Yesterday I tried my old P3 667 w/ Pinnacle PCTV Pro using composite in and Dscaler to use the Xbox. No matter how much I fussed with the plug ins it just didn't look as good when compared to a TV. (same with DVD, and Cable TV wouldn't really reach, and it probably isn't far to compare to over the air channels)

How much better are external scalers compared to PC tv tuners? I would like the added bonus of being able to use the projector with the HTPC. My lcd doesn't have DVI and likes 1024x768@75hertz best. Are there any out there which have multiple VGA inputs? Or Component? I'd like to find a DVD player with VGA output and maybe use S-video for the Xbox.

In a sentence: Do external scalers blow PC TV tuners out of the water?
 
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