Its 720p, but I don't see why it only looks good at that resolution. I believe the cable is a DVI to HDMI. I do have a PC mode, but can't figure out how to use that for the life of me. So I just have it set on HDMI1/DVI setting.
Alright MatildaPersson, that makes sense, thanks for the info.
I have a Sony Bravia HDTV 32" that has a native resolution of 1366x768, BUT In the manual it says 1080p only supported from HDMI input. So when I'm on the desktop it seems that 1366x768 is my best setting for clarity with text because at 1080p on the desktop everything is just too small and blurry, but when I go into a game I have the res set to 1920x1080 and it looks exellent, text and all. It does make a huge differance in Image quality while gaming. When I use 1366x768 in game everything is blurry and has jagged edges(even with AA).
So basically Windows resolution is set to 1366x768, and all my games run at 1920x1080. Works for me as long as the games look good while playing, and the text is clear while surfing the net and just reading text in general outside of a game.
When I set the resolution to 1080p, the screen actually pops up 1080p in the corner for a few secs then dissapears, so I know it's actually in 1080p.
Maybe this is the same for you?