Monitor vs game resolution settings-proper useage

Some of you seasoned "Tom's" veterans will be rolling your eyes to see this question being asked for what I am sure is the hundred-millionth time but, surprisingly, I find it difficult to find a one size fits all answer to the question, on the internet, of how to properly set resolutions on my monitor and in my games.

So my situation is this: I use a 55"plasma tv, connected via hdmi cable to my 7970 video card, as my monitor. Windows 7 tells me that my tv's recommended resolution is 1360X768(I'm sure a few of you are laughing at that...). Of course I can change those settings all the way up to 1920x1080 but, as I've learned, the only usable resolution is 1360x768.

When I enter various games, I am presented with a variety of resolutions I can change to and herein lies my lack of understanding on the subject. My instinct is that I should run the game at 1360x768 just to "pair" things up.

So the questions come down to:

1. Is it the case that I should always be running games at 1360x768?
2. Is there an advantage or disadvantage to changing the in-game settings to higher(or, for arguments sake, lower) resolutions?

Any other thoughts would be highly appreciated as well.
Thank you
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  1. Hmm I'd say if you could see everything within the game without some of it being cut off then try 1920x1080. Your TV, depending apon the model and make might not be able to hit 1920x1080 if it says it can't or cuts something off when you choose 1920x1080. Try that and make sure you updated drivers
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