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Well, I know that the picture quality is based entirely on the resolution of the TV and the resolution on your own computer. Most TVs under 27" have a 640x480 resolution (yes, that bad), but some of them have 800x600 resolutions. My JVC 27" widescreen (4:3) is 800x600 so I have to set my computer to 800x600 to make it look decent. Don't get me wrong, it looks good at higher resolutions, but only 1/4 or 1/3 of the PC desktop can be seen at a time if I turn it up higher than 800x600. What's the resolution on your TV?
On top of that, I highly recommend not using the TV-OUT feature for anything than watching movies from your PC or playing games. Regular PC usage just doesn't work good on TVs. Is your TV HD? If it's HD then the resolution should be massive.
It sounds to me like you have a resolution issue. If you can match up your PC resolution with your TV resolution then it should look better.
-Lasereth
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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