Windows 7 + LCD + HDMI to HDMI + ATI cards = bad quality

Im currently using a Saphire 5850 video card and windows 7 64bit, and i just bought a new Proscan 42" 1080p 120hz led lcd. The 5850 has an hdmi port so i simply hooked up my computer to my tv with an hdmi cable but the quality looks pretty bad and the borders dont line up. I did a bunch of research and i fixed the borders with catalyst control center but the quality is still bad.

According to other forums and threads it seems that its a problem with windows 7 and its like downgrading the resolution and then upgrading it making it look all grainy. Aparently this isnt a problem with vista or xp. I heard that the windows 7 beta drivers make it work but i dont think they have those for the 5xxx series. Does anyone else know anything about this issue? Would a Dvi to hdmi cable fix it?

Borders don't line up? I had a similar problem with my new LG 42" 120hz lcd set. Except I used an nvidia card. No matter what setting I fiddled with in the control panel for nvidia, I couldn't get the 1080p picture to display properly. Then I went to the TV settings and found something called picture mode which was set at 16:9. Shouldnt be a problem since 1080p is a 16:9 res, but then I switched it to Just Scan and bam, perfect picture as it should be.

So try fiddling with your TV settings.

^To the above, that Proscan, even though a low-brand/cost name, does have a 1920x1080 resolution.

yeah pc looks pretty bad on my toshiba and it will only goes as high as 1024x768 for some reason

I tried all the different setting for my picture mode and it only changed the borders which ive already fixed, quality is still the same. As for my native resolution, its most definately 1920x1080. Im 90% sure my problem is hdmi cable or driver/operating system related. I have tried two different hdmi cables btw so the cord itself is fine, its just not compatible with my os/drivers

the problem shouldn't be windows 7. It should be your ATI driver, which ATI has long been known to have shady quality drivers.

yeah i think its the driver for windows 7 thats the problem, or how the drivers fuctions with windows 7 or how the drivers fuctions with hdmi to hdmi cables. I heard this problem happens for some nvidia drivers as well. what im mainly trying to decide right now is if i should try buying a dvi to hdmi cable to see if it fixes it.