Mac Mini 2011 - Monitor Problems - Help

My picture is not sharp... just blury. Icons, pictures, text, mostly everything is bad except high quality video files.
I just purchased a Mac Mini 2011 second option and a Samsung TA531 monitor that arrived today. Hooked it up and to my surprise, it is blury and bad quality no matter what kind of resolution i use. I also try to text smoothening through terminal.. nothing helps.
My setup:
Mac Mini 2011 - second option stock
Samsung SyncMaster T27A531
Cable: HDMI
After reading about this issue, some people recommends to use a DVI or VGA cable and claims that HDMI is not suitable for computer monitors, especially Samsung.
Please, feel really sad and lost among a lot of new computer equipment that doesn't work properly

I had the same issue and didn't want to give up my Thunderbolt port, so I opted to get a Gefen HDMI Detective Plus. What this does is make the CPU think an HDMI display is attached so that your graphics CPU 'unlocks' and full speed is back. The Gefen box can either 'learn' the code of any HDMI display in your office/home, or you can preset it as a stock 1080p display. TOTALLY solved my problem... even though it did cost $85.
Apple needs to fix this as so many people use the MINI headless.
http://www.gefen.com/kvm/ext-hdmi-edidp.jsp?prod_id=8005

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