Quality of Elgato TV signal on my Mac

Sorry, this isn't directly an Apple TV question but I figure people here will know...
I'm using the Elgato Hybrid to receive TV signal on my Mac and while it is working, the quality of the video isn't good. I've tried adjusting all the software settings, but it looks considerably worse than my (old) TV and doesn't seem to match the great comments this product has gotten on website reviews. It's not stuttering (the video is smooth) but it is grainy and not sharp - like it's low resolution. Something is wrong; is there a way to figure out whether I am in fact getting all the performance out of this (compare it somehow to the pictures you guys get)? What are factors that impact quality? I'm in North America, using Comcast coax cable with a 17" Titanium laptop running 10.4.11.
Also, I have Comcast cable - if I switch to an "Eye TV 250 Plus" instead of the Hybrid, can I get the HD channels, and in that case, will the quality be even better (larger window, sharper image)? In that case, do I need a cable box from Comcast to access the high-number HD channels (830 etc.)? If so, how will the Eye TV 250 Plus change the channels on the cable box, and can I pick up the right piece of hardware somewhere (on-line?) or is Comcast the best place to go? Assuming getting the HD channels will improve the image further, what's the minimal hardware I need to get the channel 800's feed into the Eye TV 250 Plus (I think the Hybrid doesn't do HD TV)?
Mike

some more dumb questions before I take the plunge and buy goods
I want to buy a "monitor quality" TV - Elgato [cost $150 and can be used on analogue / digital / even Fox] seems to be the simple key to turning a good monitor into an even better TV [2 meet the eye - the Apple 30" and/or the Dell 30" have resolutions of 2560 X 1600 - not sure what these numbers read but they look good, relevant to the best TV in that size
Next problem: to run a stand alone monitor as a TV [in my place on a kitchen wall - hence need it more as a TV rather than as a computer but I can see where a computer could be useful] using Elgato it will need to be connected to a mac computer => if this is correct what is the cheapest way forward
Solution, possible => could my imac run en external monitor at a distance [upstairs => downstairs via wireless or cable]
Hope you can help

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