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I wonder if you are having any HDCP issues. Most if not all newer tvs have hdmi inputs that are hdcp compliant. You may need a video card that is hdcp compliant. Any luck using the vga connection?
I was in the same boat as you this past summer. I bought a 37" westy for use with a desktop, laptop with HDMI out, dish network hd. I paid $800. You should be able to get something much nicer in your price range.
As mentioned above, 1080p is the highest resolution available. Text looks great...
I didn't say I got it yesterday. Ordered it June 25, received it about two weeks ago.
Didn't realize costco longer carries it. Sorry for any confusion. It was a great deal at that price. Now at a $1000+ you have to consider the 42" 1080p with a built in tuner. BB has it for $1100.