It looks good in SD and great in HD.
PC still looks better though. If you play on miniclip you wouldn't know.
It doesn't matter if your 360 is working fine. They ussualy get messed up and break without any signs. Just wait for it.
the 360 looks ok without hdtv. but when you switch to hdtv it is such a big impact on how better the game looks. but when you then switch back to normal tv it seems that the quality is worse than ps2