Graphics card for comp running to a TV

I just recently purchased the Gateway dx4720 from best buy
and it came with a POS graphics card. I have a 26" Westinghouse LCD TV as my monitor (I purchased the best monster cable to hook it up) My TV is HDMI and is 1080 but is currently running at 720 because the resolution wont go beyond 1176x664. I tried higher resolution but the screen would black out and appear very small and shake. My current video card is NVIDIA Ge-Force 7100/ NVIDIA nForce 630i. I didnt know how to check my power supply but it is a new computer so i found that it is 300 watts from
http://compreviews.about.com/od/budgetdesk/gr/GatewayDX472003
i gathered that it was the biggest flaw of my computer. So what is the next step? I am an occasional gamer and i am willing to spend the money to make it look good, but dont want to spend more than 300$. I appreciate any help you could give me.
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More about graphics card comp running
  1. Get a HD4670 graphics card for about $80. You'll get decent performance and it's perfectly fine for a 300w power supply.

    http://www.newegg.com/Product/Product.aspx?Item=N82E16814161252

    You could go with a HD4850 and add a 500w power supply and stay under $300, but i'd really go with the 4670 before making that big of a step.

    http://www.hardwarecanucks.com/forum/hardware-canucks-reviews/13157-games-christmas-08-gpu-performance-part-ii.html
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