Did you check the "output to TV" radio button in the display settings? Check it...
Do you have your res. set at higher than 800x600? Lower it...
I just got one, it looks terrible on the desktop, but pretty good with Unreal and NFS3 on a Sony 27" TV using the S-Video cable.
When you turn on "out to TV", you will notice the resolution sets itself to 800x600 and looks brownish and doesn't fit the screen.(Mine does anyway). Set it 640x480 with the slider and it will go to that mode and both will look fine. I usually use 1024x768 or higher for my monitor, but when using TV-Out is won't let me keep it that way. It sucks, but the TV can't handle resolutions anywhere near even 800x600.
I'm glad I didn't buy it just for this option, or I would be upset.
I have noticed that when I get into a game such as Unreal, ( can set the res higher in the actual game, and it looks fine, just not on the monitor...
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