I have my PC with a Radeon HD 4870 connected to my Hitachi 57F59A 1080i CRT HDTV through HDMI.
Some of the text (especially around the edges of the screen) appears blurry. It gets worse as I increase the resolution. I can also notice some flickering on horizontal lines in web pages.
Your TV is 1080i which means it will be happy with a 540p resolution which ain't much for a pc application. It will look better if you turn off all the special modes (like auto flesh tone etc) that are supposed to make the picture better but don't. Check the text quality at lower sharpness settings too. If the sharpness is to high it causes problems at the edges of the letters.
Most TVs have all kinds of automatic adjustments that are supposed to make the picture better. They are usually touted in the literature as the greatest but most reviewers find the picture is more correct with them off. You can turn them off in the menus.
You will have to use a lower resolution as your TV is not capable of handling more resolution.
i think it has everything to do with the type of font used.
because my television can display text that is tiny without a problem if cable broadcast shows it.
but i find the text problematic at 1080i when connected to the computer.
one place to start is 'cleartype'
i think there is anti-aliasing information that isnt being transferred to the television.
or perhaps there IS anti-aliasing information being sent to the television, and that is what is causing the distortion.