How can get better computer screen resolution on my plasma tv screen?

I recently bought a DVI/HDMI cable and connected my computer to my 42" plasma tv. The resolution is very poor. I tried changing the resolution to match the tv (1080) but it made the text very hard to read. I tried adjusting the resolution from the video card and the computer settings, nothing. No matter what resolution I try, it still looks bad. Not sure if it matters, but I'm running a 7950 GT video card.

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