I'm afraid that there's not much you can do to optimize your picture. You could play around with the TV's settings and such, but that's more of a trial and error thing.

The reason that the picture is fuzzy is because the TV doesn't have anywhere close to the resolution that your iBook can generate. Your iBook has a 1024x768 resolution. A good quality TV can have about 500 or so lines of resolution. Even in that case, you're gonna be missing around 250 horizontal lines.

EDIT --- I think I may have some terms mixed up here. Mainly "lines of resolution" and pixels. I don't think that they are interchangable. But anyways, the point is that the TV doesn't have the resolution of your iBook's screen. Therefore the picture will always look fuzzy.