LCD TV 1080p=really bad quality with hdmi to pc HELP please

hi i just got a new TCL LCD24D10 a 24 inch one full hd 1080p with 60 hz i connected it with hdmi>hdmi cable to my old ati 4350 but the colors are really bad and it looks really wrong the text has white marking around it i tryed to open the CCC and fix the scaling till it fix my screen and disable the gpu scaling still the colors look really bad the tv has only one vga , one hdmi and the other pins for the normal tv i just got a vga to vga connection its really much much better but i want to use the hdmi to get full hd 1080p as i read that the signals from the vga to vga are analog not digital at first when i connected the tv using the vga i had troubles with windows 7 32 bit reading it said generic non pnp monitor or somthing like that so i had to get a software called powerstrip and mde a custom 1920x1080 resolution ....am geting an ati 5850 soon but am really depressed been trying to fix it with the hdmi cable for 2 days so please i would really appreciate the help