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You haven't set it up correctly, and it depends on the tv. (usual excuses then) If you have read some other posters the Wii can look a lot better on an HDTV than SD (obviously not on par with 360/PS3 but better than SD)

This is partly the reason I do not plan on buying HD for a while, it is way too complex and often you will be advised to buy a certain type/brand for one thing, but advised against it for something else.