Another thing to try is to set your fonts from the default 96DPI to a much higher number. Windows allows 120DPI, but you can add custom values like 200 or more DPI to really make them big.
Also, there are a number of high-visability (ie: large font) themes built into windows. These are for people using TVs and people with vision problems. Try using them to see what you are doing.
The only way to get a TV to look as good as an arcade monitor is to use true RGB input (ie: SCART) with native modelines. Component (ie: YCrCb) is the next best, followed by S-Video and then Composite.
Think about what your PC is doing: It has a native digital size (800x600) which then gets sent to a video card's DAC (Digital-Analogue Converter) to convert it to analogue, then a transcoder which converts it to Y/C, then it gets scaled down to native TV resolution and spat out across a noisey, high-interference line to your TV. And you wonder why the picture looks so rubbish?