That netbook uses the Intel GMA 3150 integrated grahpics. Max resolution from the VGA port is 1400X1050 which is significantly less than 1080p (1920X1080) so the picture won't fill up the whole screen. Furthermore, it only has a VGA output so even if your TV has a VGA port (some do, most newer ones don't) you will need a separate connection for audio. Even furthermore, the Atom processor is very weak so streaming content (Netflix, Hulu, Youtube, etc...) will be fairly choppy at higher resolutions.
Oh that suck. I was hoping for a cheap solution for my elderly parents. They recently subscribe to an online service where they can watch TV from Thailand. Right now he can only watch it on his PC which is on another room and it is wired right into the wireless router (older Dell pc). Since I am home for the Holidays I brought my laptop which has wireless and HDMI. So I plug my laptop into the TV and it worked fine (other than wirless freezing and dropping signals).
So I was hoping to get a Netbook for them since all they will need is Internet access and nothing else. Know of any other solution?
That will run full 1080p video and be a little faster than that netbook you mentioned originally. Just remember if you get that specific nettop you will need to get your parents a wireless keyboard/mouse so that they can surf the web from the comfort of their couch.