Knowing the connections is critical. S-Video carries interlaced, low quality, 'standard' video to your television. It is a far cry from PC resolution and is similar to taking a photo of a Monet, then printing it in black and white, the photocopying it, then running it through the washing machine once or twice.
Your DISPLAY is crucial to being able to display high resolution images. If your display only has s-video and composite inputs, it can't do any better than what you currently have really. You can set your PC resolution lower - try 640x480 and see how that looks.
But, if your display has component inputs or better yet, a RGBHV or 15-pin VGA connector, then you can get STUNNING results.
HTPC is not a s-video connection and is not worth talking about in terms of quality, as you already know. A $2,500.00 plasma with a direct connection to your PC will give you image quality that should blow you away. If your display can't handle HDTV or doesn't have any PC inputs on it, then you have far bigger issues that aren't going to be handled by buying a new video card. A new display is in order to allow for higher resolutions and superior quality.
I have zero details on specific cards or products which are superior to others and all the connections I have made have utilized RGBHV connections, never component out of PCs.