Connecting laptop to 26" LED TV as the monitor

Hello,
I just purchased a 26" LG LED TV to use as a monitor connected to my Dell E6400 laptop. What is the best type of cable to connect the two? Laptop has a Display port, DVI Out, and VGA. I'm assuming DP or DVI are optimal but unsure which is preferred.

Also, the TV is a 720P. Text is kind of blurry. Would this be corrected if I upgraded the TV to a 1080P model?
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More about connecting laptop monitor
  1. for the resolution your TV supports you can use any of the above.
    look in TV options to set it to PC mode, that should sharpen the image
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