However, the picture on the tv is too "BIG" and i have to move my mouse to the bottom screen to move to a lower position (i.e. like moving the entire desktop"
That's a very simple problem, and totally unrelated to TV out, per se.
When you start X, X sets a certain resolution to be your desktop size. When you change resolutions, the virtual desktop size does NOT change. If you want to run TV out and have the full desktop be onscreen, you'll need to start X at 640x480. Primer has a bunch of very useful examples and tips at http://www.sh.nu/nvidia/