Im using my LCD tv as a second monitor. I have it connected via the Mini DVI - VGA adapter and a VGA cord. I have the picture on the screen but i cant get the resolution looking natural so its not stretched. The tv is 1366x768 but i cant get anything to work properly. Am i doing something wrong, everything i try makes it look stretched.

It's probably because your using a VGA adapter which I believe down scales the image, I have my Powerbook G4 plugged into my 32" TV (dunno if its a plasma or not, but it is flatscreen) through a DVI to HDMI cable, but you have an LCD, so you probably don't have DVI or HDMI on it.

should i invest in going to HDMI because the tv has HDMI inputs.

I don't really know, wait for a more experienced user to step in and answer because I could be wrong. But a DVI to HDMI cable would be handy =D

That's odd. Which TV are you using? In my experience the VGA connection on the TV gets the best picture (correct resolution and all) from my PC rather than the HDMI. I'm using some sort of Sony Bravia and it has special settings just for computers in the menu. You might wanna check if you haven't already. (I'm using a DVI to VGA adaptor on a Power Mac G4)