I have been obsessed with TV output for a while and finally have Everything almost the way I would like, except one thing. I would like to have a radeon 7500 instead of the 8500. the problem with the 8500 is the picture on the TV at 800x600 has an odd filter or mask over the screen that makes everything look blochy and washed out. the 7500 does not have this problem. It is not my rig, drivers or anything else except for the radeon 8500 and this has ben discussed in depth in a thread I have started on another forum. Many many radeon 8500 users have this same problem. However 40x480 and a custom res of 720x568 are fine, no problems.
See for TV out 800x600 seems to be the best resoluton for websurfing and games all you do is change a few setings to make text larger throughout windows.
Right now I run anythng that will let me run at 720x568 (I think that is the res cant remember off hand) which is the windows desktop, and D3D games, everything else I run at 640x480. of course I have 2x quality smoothvision enabled as well. and I do have to be honest everything at those resolutins look great. DVDs (dvds look better on this system than my cheap oritron DVD Player)games etc. I like the fact of having a pc hooked to the stereo too for an MP3 Jukebox

And it may sound geeky to some people but man it is fun playing You dont know jack on a big screen

Also if you are really obsessed with gameing there are lots of great emulators out there that let you play many console games through the pc like epsxe.
I have had a few people that are strictly console amers tell me they really like this setup, especially graphic wise. Many console only gamers dont realise what a pc can do and that you can play some games multiplayer on one unit, like nba 2000, madden, raceing games etc and since I have a lan setup even FPS are great to play
Anyway below is my rig and if anyone has anyquestions in reguards to TV out feel free to ask me. I have tried many cards and setups so far. My next step is to get a dolby digital reciever and speakers then a TV with component in ;P
A few tips....
If you have to go through a VCR to get to your TV you will never be happy image qualty will be crap no matter what. The absolute best way to hook up you pc is usng S-video or if your TV and card support it component video.
If you use a geforce card dont use the Drivers for TV out use TV tool. There is a great improvement in video quality using ths program.
My setup....
Mid Tower Case With lots of cooling ( hey its in an entertainment center I need the extra cooling lol)
ecs k7s5a
1 ghz AMD @ 1.33 Ghz w/ SK-6 (temp difference overclocked was only about 2-4 degrees c)
512mb pc 2100 DDR Mem
40 & 27 gb 7200 RPM hdd
8x DVD
Radeon 8500
SB Audigy
27" Panasonic Panablack TV
Sony Dolby pro logic home theatre system
Logitech Wireless Optical mouse
Logitech Wireless Gamepad
Wireless IR Keyboard with built in pointing device
Antec Easy USB Drive bay (2x USB Ports)
Adaptoid w/ N64 controller and rumble/ tilt pack & 10'usb extension cable (for two player games)
Windows XP
Shared DSL Connection
(BTW only disadvantage to having wireless stuff is all the batterys like the ones that are dying in this keyboard right now)