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I am using a 42in LCD TV with dvi-hdmi input the signal is regular cable not HD. I just yestereday picked up an ATI 650 HD tuner card and it's the same as the Haupage 150 mce that I currently have.
doesn't seem to matter what resolution i put in there it isn't a good picture very grainy and lots of artifacting. I only watch sports for TV programs so don't really want to pay for digital HD cable box. Would it help if I got an a cable box and input the signal as S-video rather than analog cable?
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Unfortunately with a TV that big, SD cable is just going to look bad. The bigger the TV, the more obvious it will be. You would have to move to an HD signal to get the benefits from your TV. At that point though, you won't be able to use your PC to view it as it will be an encrypted signal.
I only use my HTPC for outputting SD cable onto a 32" CRT TV. I use my SHAW PVR to output my SD and HD to my 32" WS Viewsonic LCD TV. 32" is alot smaller than yours but SD still looks like crap. HD on the other hand is amazing.
Switching from Digital to Analogue won't help you at all in this case.