I have a Media Director connected to a TV and another one connected to a projector. The one connected to the the TV is via the svideo connection and the text is not as clear as a dedicated VGA screen but it is certainly readable. Some of the media details can sometimes be a bit hard when you click on a movie or something but I can't fault it too much. It is a Sony 80cm and I am using PAL - but your results should be similar. First chech your cables and connections I guess. I have run two Media Directors on that TV, the first had a FX5200 in it and worked fine - the second (and current) is the 6150 built into the Asus M2NPV-VM motherboard and I think the results are better on this.
The other media director is hooked up to an Acer projector using 720p resolution (using VGA cable). The results are excellent.