I can now get it to work. The problem was with the following line--- Option "MetaModes" "1024x768,1024x768; 800x600, 800x600; 640x480, 640x480;"
I have removed the 1024x768,1024x768; entry and now everything works fine. Apparently not all TVs support this format.
(Option "ConnectedMonitor" "crt,crt"
Option "TVStandard" "PAL-I") are there because I needed both tv-out and dual monitors.