Here is a flow chart of what I was trying to accomplish:
PLEASE NOTE: While these settings worked great for me, they may not work for you at all.
One thing that I've learned while playing with this stuff is that what looks good to one person looks terrible to another and also settings can and need to change drastically between different setups, especially when the TV/Monitor changes.
I ran a SD 27" tube TV with this HTPC and mostly default settings for about a year but after I upgraded to the 42" LCD I had to spends countless hours tweaking every last detail to get the picture to where it is today. Hopefully, this blog will keep me from ever having to do that again and also help someone else who is in the same position.
Enjoy!