Picture larger than tv screen after ati card drivers installed, i just gave up

I'll say it. I can NOT fix that.
I feel much better now.
What I've got here is a failure to communicate (sounds familiar) between my XFX HD-585A-ZNFC Radeon HD 5850 video card-hdmi- my ONKYO TX-SR606 receiver-hdmi-my Element PLX4202B plasma TV.
If I do not have my video card installed picture fits perfectly on 1024x768 which I believe is TV's native resolution. When I install my video card (tried more than 10 different drivers, now with Catalyst 12.1) picture is larger than TV (a little bit from all 4 sides). ANNOYING.
Looks like driver problem or maybe it is time for new TV and receiver.
Any ideas?
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More about picture larger screen card drivers installed gave
  1. Yes I had this problem before.

    1. Open CCC and go to "my VGA displays" under the title "desktops and displays" menu.
    2. Click on image adjustments.
    3. Adjust the image.

    Note: My drivers are outdated.

    Hope it helps!
  2. by image adjustment do you mean scaling option
    cause i can only use scaling for hd resolutions
    and 1024x768 is not one of them
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