Standard definition NTSC TV's have a resolution of 270x480 and though I'm not positive, my guess would be that the Rebel is outputting the video signal at that resolution. And as you've already mentioned, it's not good.
You got me thinking though. I have a Creative Zen Vision W that can copy memory cards via its built-in card reader. Its built-in 16:9 screen has a resolution of 480x272, which isn't great, but it does look great on its screen. However, it does have a composite output (red, white, yellow) that can connect to an external source that sends a signal at 720x480, which is DVD quality.
Just to confirm, I just took a quick picture on my 20D and copied the card straight to the Zen Vision W, then hooked it up to my HDTV. And sure enough, the resolution is great. Very detailed actually.
My guess is, you could simply buy an LCD monitor that has input for composite video along with the Creative Zen Vision W and it'll do the job for you. Not only that, once you copy the card over to the Zen, it'll act as a backup anyways since it'll be copying your images to its internal hard drive (30gb or 60gb).
However, depending on your purchasing preferences (new vs used), you might be creeping up into the price territory of a decent used laptop being that the Zen Vision W 30gb is anywhere from $270 and up brand new.
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