New Mac mini display issues

My mom bought be a new Mac mini (new 2010 model) earlier today, and I've having a wee-bit of trouble. I'm hooked up via HDMI to my 32" HDTV and everything looks fuzzy--text on everything is rough, and pictures have low detail, so they look like paintings. I went to my display settings and put it on the highest setting (1360 x 768), but it didn't help. Is there another option I should try?

First, look in the TV's picture adjustment menus for a picture mode control. See if it's set to "vivid" or "dynamic" or something similar. Change that to standard, normal, or similar. This will tone down the TV doing all sorts of outlandish "enhancements" to the signal being input from the Mac.
Second, make sure that the sharpness adjustment isn't turned up significantly, as this will hurt the legibility of type on the screen. The lower the sharpness is set, the more readable the text will be. You'll have to strike a balance that you're happy with between text sharpness and a satisfying sharpness for the video content you watch. On my sony tv, I have the sharpness set at about 25%.

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