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The image quality of TV tuner will never be as good as what your monitor is capable of. This is because the resolution of TV is very low - something like 640x480, and the resolution of your monitor is probably much higher. Especially on LCD sccreens.
I learnt this here a couple months ago when I was asking about image quality of my TV tuner card. There isn't really anything you can do to make the image quality any better, other than scaling the TV's window down to it's natural resolution. Image quality looks great on mine when I put it to about 800x600.
You mentioned your friend's HDTV system. Is he using a TV card in his computer or something? Or does he have an actual HDTV? There is such thing as a HDTV tuner that you can buy for your computer. But it isn't quite the same as a normal TV tuner card. A HDTV tuner doesn't go inside of your computer. It's a box that you plug your cable (or video game) into one end, and your monitor into the other. It turns your monitor screen into a television. It isn't like a TV card in your computer where you have to load software and get a scalable/movable window; it's full screen all the time. I've never had one or used one, so I can't really say anything about the quality of these, or any details about how they work. I've just seen them for sell on shelves.
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