DVI To HDMI Vs VGA

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I'm thinking digital > analog, but I'll let people more knowledgeable about this help you further.

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It can carry up to a 2048x1536 picture

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How so...that doesn't make sense

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Make sure the resolution is set to the native resolution of the TV. They aren't always the exact PC resolutions. Just put it as high as it will go and then try a couple others and compare.

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Also, go into your settings and play with picture settings. My 42" Sony had some settings to make regular channels look better by blurring and such. You'll need to make it display one pixel per pixel and that pixel only, if that make sense. Otherwise text can look horrible. Also, you'll need to remember that you have 1920x1080 pixels spread our over a 40" diagonal surface when your monitor would have them in 1/4 of the space. They will always looks worse from close up.

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Use the HDMI input on your tv. In order to achieve the purest signal possible, cut down on the amount of signal conversions and/or manipulations. Your video card will output a digital signal to a digital input on your LCD. If it's fed the native resolution, your LCD circuitry will leave it alone and display it. If it's fed any other resolution, it will have to be converted and that will degrade the original signal.

If you use the vga input, your tv will be forced to convert it to it's native resolution before displaying it since LCD is a digital format. If you choose a different resolution other than the native, it will be forced to do a second signal conversion which will degrade the signal further.

Edit: I strongly disagree with the above statement that an analog signal will look as good as a digital signal on a digital television. If for some reason the digital input looks inferior, something is wrong with either the input circuitry or user settings.

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Only if you have a really cheap VGA cable. Remember there were 2048x1536 CRT monitors that looked every bit as good if not better then any current LCD panels.

However, the cable that came free with a 15" CRT screen will probably ghost like crazy. I had to try 3 VGA cables I had lying around the house before I found one that worked good on my 1080p TV. It looks just as good as the HDMI connection did though.

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Don't forget that he has an LCD and not a CRT. An LCD will convert any input into a digital format at its native resolution. If you ask it to display that resolution, it will then leave it alone. If you ask for anything other than native, it will convert the signal again. It's best to leave a signal as pure as possible.