THe XHA1 came with two cables that allow you to hook up to a television. The optional cord that allows you to hook up through the HDMI input was not included with the camera. IS there a big difference in the quality of the picture when using this cord as oposed to
the one that has the red, green and blue ends on it?

This camera does not have an HDMI output.

The manual refers to it as the HDV/DV Terminal and the cord as the DV Cable. I'm thinking about buying it but only if the picture quality is better than the DTC 1000 cable. THe DTC cabe provides a great picture and i'm wondering if the DV Cable is any better. I'm wondering if i've ever actaully seen the full quality of this camera.

That's the firewire port you use to load footage into your computer for editing. I don't think there are any TVs that take firewire in. That component out cable is the best you're going to get for looking at tapes on a TV direct from the camera.