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Dreamcast VGA Box
The VGA Box is a device sold by SEGA that allows you to hookup your Dreamcast to your VGA computer monitor. The advantage to doing this is the much great image fidelity you get with a monitor over a standard NTSC television set.

Note that games have to be VGA Box compatible to work, but this should not be a problem as almost all games are compatible with the device except for a few exceptions.

The left side in the picture above shows the RCA (two audio and video), and S-Video inputs. The right side holds the 15-pin VGA port, and an additional audio jack, so you can hook up some earphones, or your PC speakers.

Setup is very easy with this device, as you just plug it into the DC, and then plug your monitor into it, and turn the DC on. The red LED pictured above comes on, when the VGA box is attached to the Dreamcast, and when the DC is powered up.

A quote from NCS on how much better Sonic Adventure looks with the VGA Box:

Sonic Adventure is VGA compatible so we popped that in for a run. The details that are brought out by the VGA Box are evident on the Sonic Adventure logo screen. To the right of the lettering is a faded image of stairs and 'castle' walls. We never noticed that before. The battle with the puddle creature shows off the micro details that one may not notice with a standard video display. As the camera pans around the puddle beast, you'll notice that the water inside of it is in constant motion with mini waves, streaming bubbles and turgid random movement. Even as you dash into Mr. Puddle, it's body continues the watery dance inside, oblivious to the battle outside.
   Emerald Coast never looked so good with a realistic ocean, a sandy beach, blue skies and brilliantly colored beach umbrellas. It looks warm. The seagulls overhead are crisp and the palm trees appear true to life. One thing that we found ourselves doing was stopping Sonic at various vantage points to rotate him to get a 360 degree view of his surroundings. Just to see how everything looked with new video. The DC does nature scenes exceptionally well. Rock formations look like real rocks while trees, ferns and mosses look like real flora. Sonic is a gorgeous game and the VGA Box brings it all out. Sort of like video makeup. NCS condones S-Video but VGA is nirvana. XRGB upscan fans and purists should absolutely pick one of these up. Nothing is better for DC video at this stage of Dreamcast development.
(Source: NCS, Cornel, Richard Ho - aka NoriPhd by email, HK gamer named "valis")