Right, so I tested the freshly reinstalled system last night, and eventually managed to get the display to work properly.
I had to change the following:
1. Set TV overscan to OFF
2. Set TV display to WIDE
3. Set gpu overscan setting to 0% on Catalyst control panel
4. Set pixel ratio to 4:4:4 RGB
5. Make sure gpu output is for 1080p and not 1080i
After this I managed to get a clear and crisp display. Text is now displaying very nicely and movies looks good. So I think it's safe to say the cable is fine but the reinstall probably made the biggest difference. I thing the 64bit version of Windows previously was messing things up.
Now, here is the kicker. After all of this effort to get the HDMI to work properly, I find out that the AUDIO OUT on the TV doesn't work for the HDMI audio signal. So although everything is fine now, I can't output the audio to my HT
and I'll have to get a sound card of sorts for the htpc.
Since I have a spare PCI-e slot, I can get a card or a USB thingy.
I also decided not to run a 4km UTP cable through my house to get the MS on the net, so I'll be getting a Wireless USB Wifi. I see a 150Mbs one is quite cheap.
[MENTION=766]ian_stagib[/MENTION] and others, thanks for the assistance and advice. Hopefully someone else could possibly also learn something from this thread.