It can support full HD so there shouldn't really be any problems there. I often have the tv connected to my pc via the HDMI and the picture is very sharp, so the HD does seem to work so I don't think its a problem with either the TV itself or the HDMI cable.
Dropping the resolution didn't seem to help at all.
I just cant understand why the picture isn't as good as it should be, the same thing occurs when I try using an xbox 360.
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