Hdtv extended desktop image quality

Hey guys,

I just purchased an LG M2262D monitor/hdtv. I bought an HDMI cable and connected it from my laptop (Dell Studio 17, Vista Home Premium, ATI Mobility Radeon HD 3650) to the back of the tv. I extended the display and it does work, but the image quality is kinda blurry. I have the resolution of the TV down a few notches so that the wallpaper fills the whole screen, but even at the highest resolution, the wallpaper is smaller than the whole screen and the image quality is still just as blurry.

I've read that the HDMI port on the back of the TV doesn't support PC connections (yes, the connection still works, but I don't think its utilizing the full potential of the TV). I was thinking 2 things: my graphics card isn't good enough. Or, maybe I should try an HDMI to DVI so that I'm using the DVI port on the TV instead of the HDMI port.

Thanks for your help
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