Windows 7 - Just set up my new HTPC computer

Information's in the description.

This is the first computer I ever built so I was a little bit nervous when I assembled it.

Originally I intended to wait to get a DVD drive (just got the basics) and borrow one in order to install 7, but this motherboard doesn't have IDE
So I copied the installer to a USB stick and installed it that way.

Afterwards it all set up fine and everything is actually perfect!
The problem is, the old 51" 1080i tv that I have this hooked to makes the text somewhat blurry, no matter the settings I use. One mode distorts the image while the other mode has the image so soft it's painful to read

Of course; I cant afford to replace this tv

computer is still good for watching videos; just text is kinda painful

How are you hooking it up to the TV HDMI/VGA etc ?

Is the HTPC detecting the correct resolution for the TV?

The TV is a Hitachi 51f500 and I'm using a hdmi-DVI adaptor; as the Blu-Ray player, TelusTV unit and the computer all connect to a HDMI splitter which then splits out the audio so I stil get sound when I connect to the TV.

Tried connecting directly and it still is like that.

The annoying this is that the text on the menu is super crisp and clear, so i know this TV is capable of better resolution.

I suppose it' now just a font problem if you look at the pictures you'll see that normal text is somewhat legible, but warning popups are very very blurry.
The images themselves arr not that great, so compare the sharpness of the text to the sharpness of the tv itself.