you should be able to pull that stupid faux woodgrain thing off. it's just a faceplate. only n00bs use them, he must be a total n00b. also, he prob just didn't give you the component cables it comes with. they don't plug into component on the 360,it's some weird jack but they do plug into your tv as traditional component.
but why use component when you can go HDMI?
you should be able to stream Netflix, you just have to log into your account. also be sure and start up XBL asap when you get a game.