Connecting a laptop to TV - Resolution settings?

Hi I'm having trouble connecting my laptop to TV. The problem is not with the connection itself -- I'm using an HDMI cable (HDMI port on Laptop and TV) -- but with the resolution settings. So far, I've tried both a display clone and a "second monitor" but I've been unable to find a resolution setting for which the display that is output to the TV actually fits the tv screen. Either it is too large and the display extends beyond the edge of the TV (leading to missing sides when trying to watch a movie on full-screen) or the display is too small and it is surrounded by black on all sides.

Here are the specs (probably more than you need but I thought I'd included as much info as possible):

TV:
Toshiba 62HMX84
16:9 Native Aspect Ratio
1280x720 Native Resolution

Laptop:
Acer 5742-7120
• 15.6-inch HD widescreen CineCrystal LED-backlit display with native 720p HD resolution (1366 x 768), high-brightness (200-nit), and 16:9 aspect ratio.
• 2.4 GHz Intel Core i3-370M dual-core processor
• 320 GB SATA hard drive (5400 RPM)
• 4 GB of installed DDR3 RAM (1066 MHz)
• Intel HD Graphics (with 128 MB of dedicated system memory) deliver turbo-charged performance and fast throughput and provides support for Microsoft DirectX 10 games.
• 8x SuperMulti DVD±R/RW drive
• HDMI high-definition audio/video output allows a single cable to transmit uncompressed high-definition video to your digital TV or LCD
• Windows 7 Home Premium (64-bit)


Any recommendations on how to actually fit the display to the TV screen? Also, I'd like to utilize the highest quality resolution I can, so please bear that in mind when suggesting solutions.

Thanks so much,
Sam