Beejay, you seem to forget it's a TV, not a 32" monitor. A regular TV of today can produce a picture according to HD 1080p specifications, i.e. 1920 * 1080. In a TV only the pixel size grows, not the amount of them. A monitor that size could have a resolution of 2560 * 2048, but the price would have four digits... And not have a built-in TV.
If your videocard doesn't show 1920 * 1080 after driver update, then there's something wrong in your TV's settings. On your remote you should find an input device select button, a rectangle with an arrow pointing from left to the center of it, giving a menu of currently available sources. Make sure the input you have connected to your computer is set to "PC". Maybe you need to go deeper into the settings for that, but since it is a multifunctional, I assume it shouldn't be buried too deep.