1080i for XBox 360 + HD DVD player

I have HD TV which has DVI (no HDCP) and component input. It can accept 1080i, not 1080p. I am trying to understand if I can play HD-DVD movies on my TV and I think XBox 360 with HDMI and with HD-DVD add-on can do it. But I have 3 options how I can connect XBox to TV

Option 1: Use component cables. Questions: will XBox (the model that have HDMI, but connected through component) output 1080i via component? (probably yes, but need conformation). Will it upscale DVDs? (probably no, but need conformation)

Option 2: Use HDMI cable but then use HDMI-to-DVI converter. Questions: will TV be able to receive 1080i for HD movies even though it does not have HDCP? Will XBox 360 be able to upscale DVD and show on my non-HDCP TV in 1080i?

Option 3: Use XBox 360 VGA HD AV Cable, and convert it to DVI. Same questions: playing HD movies in 1080i and upscaling DVDs (there are reports that DVDs are upscaled if used with VGA cable)