We tried this out with a Raspberry Pi and an old VGA monitor we had and found the display output to be very crisp and vivid. The video works fantastic with a Raspberry Pi right out of the box. To enable the audio and customize the resolution, check the Technical tab for our suggested /boot/config.txt The easiest way to do that is to insert the programmed Pi SD card into your computer and look for the config.txt file that is in the root directory of the SD card, edit it, and save it. The monitor will look best if you can set the HDMI output to the matching resolution so try that if you want a good looking display.
It also works with other kinds of computers and HDMI output devices, we plugged it into a an XBOX360 and then also a Windows box and it came up as a secondary monitor with adjustable resolutions (from 800x600 up to 1920x1080) in the Display panel.
Package comes with one HDMI to VGA adapter and one 3.5mm Male/Male Stereo Cable!
Here's our known-good /boot/config.txt which will set the resolution to 800x600 and enable the audio out of the adapter. we have a couple other resolution options documented as well!