Issues with my resolution

Ok well for some reason I cannot get my desktop to fill my TV's entire usable space. I'm using a 720p TV through a HDMI and the GPU is a ATI 5770. I have the res set to 1280x720 and it fills most of the screen except there are black bars on all sides. I know I need to set it to 1366x768 but for some reason when I do it the desktop shrinks dramatically and everything is tiny. Can someone please help me because I use my computer A LOT and don't want to ruin my TV.
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