I also see this blurry image. If you set your resolution to 800 x 600, it is perfect. Anything greater than that, and the image becomes blurry. ( also see it clearer in the center vs the edges when at a resolution higher than 800 x 600). I wonder if the DVI input is used, if a higher resolution is possible? I would really prefer resolution greater than 800 x 600, but I get a headache if I use the 'blurry' option...and most web sites are geared towards resolution greater than 800 x 600. I guess I consider the 507 a TV 1st and a PC 2nd...so this is not a show stopper for me.
As with some of the other suggestions, you got a TV that can do pixel perfect matching if you send it native rez. So don't screw around with anything but 1280x720 on the 507. If that still isn't truly perfect (no matter what it will be better than any other rez you can send it) then you can play with SM and user settings to get the picture how you like it.
No, 1280x720 would not look great on the laptop. But I tested my HTPC running 1280x720 on my 1280x1024 LCD Display before running it through the GWII and it worked (not DVI, VGA). I am not familiar with the S3 but if it can drive 1280x720, that's what you should send.
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