Yeah it can look pretty crappy depending on the TV and how far back you sit.
I have a 40" TV and SD actually looks not that bad on some shows like discovery and stuff, but on sports it looks bad. The model of TV can make a pretty big difference as well, I've got a Sony Bravia which has pretty good upscaling hardware in it so it does a decent job of making it look better. Play around with things like sharpness in your TV to see if you can make it better too.
An SVideo signal is still analog, just a better quality one so at the very least use an svideo cable (or component if your cable box has it) to get the signal to the TV.. the yellow ended composite is the worst possible one to use.
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