The low resolution might not be the only problem. It might also be that you're actually not operating at the native resolution. At some point, Intel/nVidia/AMD had problems outputting non-standard resolutions via HDMI with HDTVs. 720p and 1080p were ok, but 1366x768 was not. And that's because it's not really a HDTV standard. Not gonna go further into that, but let's just say that the panel and TV manufacturers really dropped the ball on that one, and you'll have nobody else to blame. They cut corners, and the rest of the industry got stuck with the bill. Long story short, Intel/nVidia/AMD usually simply offered the nearest standard. Not sure whether they've fixed it since then.
There's also the possibility of your TV scaling the image. Try to find settings from the TV that give the option of "unscaled" image and aspect ratio. Also, make sure it's not your AMD GPU that is downscaling your image. My AMD A10-7800 system defaulted to 10% downscaling for anything it recognized as HDTV. 0% is the correct setting. You can find it in AMD's Catalyst Control Center.
Furthermore, are you using VGA or DVI-D or HDMI? VGA will make the image/text blurry, so before you try anything below, first change to DVI-D or HDMI.
To test whether you are using the native resolution:
First, go to
http://tft.vanity.dk/monitorTest_scale.html
and select "1:1 pixel mapping" from the top menu.
The "gray" in that page is actually black and white dots put side by side. If your monitor is operating at its native resolution (1366x768), then that gray should be uniformal. If you are using a wrong resolution or something is scaling the image, then it will appear as blotchy/patchy or with vertical and/or horizontal stripes and artefacts. If you have a magnifying glass, you might be able to distinguish the separate pixels. But in essence, if you're seeing anything else besides a "flat gray" background, then you're not operating at the right resolution.
Ps. I'm myself using a 42" 1080p HDTV from a 1m distance (~3ft). Earlier I had a similar 32" Panasonic with 1366x768 resolution. The problem wasn't that the pixels were too big. The problem was that they didn't align correctly with the actual signal, leaving a blurry image.