Help Me Understand the Res of My HDTV

Hello, I own the Toshiba 32SL410U LED HDTV. I'm trying to use it as a monitor for my PC. My priority is sharp images for web browsing and movie watching. It is currently connected from my PC (DVI out) to the first HDMI port via a DVI to HDMI adapter cord.

The specifications ( state that the TV has a "native display resolution" of 1366x768. Yet it also says it has a "video resolution" of 720p. HOWEVER, if you tab over from the specifications to the features tab in the link I provided above, it also says it is capable of "...full 1080p high-definition video..." when connected through an HDMI port.

If I set it to 1366x768 in the Catalyst Control Center software (Desktop Management > Desktop Properties), the TV will report it's in 1920x1080. If I set it to 720p, the TV will report it's in 1280x768. If it set it to 1080i the TV will report it's in 1080i. If I set it to 1080p the TV will report it's in 1920x1080. Interestingly, when I set the TV to 1366x768 or to 1080p with my software, the images look completely different even though the TV self reports it's in 1920x1080 both times.

So, uh, ***? What resolution should I set the TV to with my ATI Catalyst Control Center software? I need this broken down into layman's terms. Also, I am not aware of how to use the Catalyst Control Center's scaling options and HDTV support in conjunction with manually setting the resolution to get the best results (if that's even possible), so any tips or links would be greatly appreciated! Thanks!
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More about help understand hdtv
  1. Basically the software up-converts (up-scales) to the proper resolution. If you have no trouble at 1920x1080p then it's not a problem. Native Resolution usually means that maximum pixels it can produce at that resolution.
  2. always use the Native resolution normally it is (recommended) on windows resolution settings.

    if the television can hold 1080p without pixel distortion or borders cutted out, go for it, but i highly doubt it will be working if it is not the (recommended) resolution.
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