My work buddy and I have been playing Skyrim on SD TV, I never really had a problem only found it hard to read some stuff but he had the compass at the top cut off so he bought a 32" HD TV. My 360 had to go into a repair shop and was in there for 4 weeks, since then I got a 32" HD TV. I ask my work friend if he changed the setting to 1080i, he said he didn't change anything. When I set mine up I checked out the game first and it definitely looked better than SD TV, then went into settings and it was in TV mode, and didn't change till I changed the switch on the component cable to HD TV, wow! wait till I tell him tomorrow he's been playing for months in TV mode. Even the sound is fantastic now. I almost feel like starting a new game, I did just to the end of the cave and deleted it.
This made me chuckle. Back when Oblivion first came out I bought my 360 and Oblivion (already had the old Xbox), a work friend also bought it. In time I found out he was playing on a standard def TV. So I told him he should come over after work and check it out on my 55" LCD. Well, at the end of the work night I found out he had a 19" TV!!! I was like, you HAVE to come. He was blown away! It was hilarious. Not long after he started scraping together some money and got himself a 32" or something like that. LOL