i just got a ati HD3450 and it rocks on even bluray
[so it handles 1080P even easily, tho most of my stuff is also 720p+1080i]
PQ is excellent and no stutters at all...
the 8.11 drivers have really made things work great..
has hdmi out with audio, uses a dongle on the dvi..it's also only 25w and silent and low profile..
definitely does tv out [both composite and svideo] and even component[RGB]!
just make sure you get a card with all the adapters/cables you need..
many don't come with the hdmi adapter [it's only 10$]
i would recommend the 3650 if you don't need low profile,faster ram and more shaders,etc for stream processing for games..
[and possibly better performance with transcoding in next driver]
tho it shouldn't be any faster for video..and will consume more power..
[tho still doesn't need any extra power connectors]