Most TV's won't accept 1920x1080 using VGA. Virtually every TV with a HDMI imput will (or should) accept 1920x1080 via HDMI. Obviously if it's a only a 720p panel then the picture will be scaled but every 1080p panel will accept 1920x1080 via HDMI.
If you're using a TV that's been manufactured within the past 1-2 years then HDMI is by far the preferred option for any HTPC use simply because it'll accept 50Hz rather than being forced to use the 60Hz that VGA offers. You also get 1:1 pixel mapping via 1920x1080 using HDMI. VGA should only be a last resort.
NZ is a 50Hz country and all TV broadcasts in NZ are 50Hz PAL.
If you use 60Hz your screen refresh rate is different to the video content you're playing and will cause tearing which has the potential to be very annoying or not even noticeable depending on how observant you are.
Likewise if you view any NTSC 60Hz content at 50Hz you'll encounter issues as the refresh rate of the screen is less than the content.
And if you set your HTPC to output at 59.whateverthehellitis then you get the best of both worlds, right? (assuming you will view both PAL and NTSC content)
Our sony bravia D series only accepts 1360x768 @ 60hz, no other frequencies. This is a pain since 50 is ideal for playback, but not possible, let alone true 24p etc.
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