The problem is probably TV-side... try messing around with the TV's picture settings. If there's any funky image post-processing enabled and disable them, try adjusting your sharpness setting, etc.
The only thing you need to be concerned about as far as your PC settings go is making sure its resolution is set to 720p (1280x720).
But 720p is pretty low resolution, especially for that size of a screen... so you're going to be able to make out individual pixels even after you've got all the settings set properly.