It seems to me that you are watchin an analog signal on a digital HD TV, the analog signal is has a standard resolution of 720x576 for NTSC (American Signal) and 720x480 for PAL (European Signal).
It could be worth to go contact your cable company, they can hook you up with a digital receiver which gives a better signal and might even have a HD Signal (this means it has a HD-Ready 1280x720 of Full HD 1920x1080 resolution).
If you really want to use your LCD TV on his max this is really worth considering
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