Currently, I have tried the deleting the "#'s" in the ' sudo nano /boot/config.txt ' file/set up way. It is not working.
If you have activated ALL the lines in the sample configuration you probably have mutually conflicting settings enabled. Try thoughtful experimentation with the options, inspired by reading the documentation.
And as a factual note:
/boot/config.txt is the name of the file;
nano is an editor;
sudo is a command needed to give yourself enough privilege ('power') to change a critical file within the Operating system.
I am wondering however if this has anything to do with having not created an image with Win32diskimager?
That is something you do to make a backup of your working Operating System once it is working the way you want. It is not relevant to setting the screen resolution.
the HDMI out isn't really communicating with the TV.
If you can see a picture on the screen well enough to know that it is too small and that you want to change the icons then the HDMI out must be communicating with the TV.
Documentation for the video mode setting is on the wiki here. You probably need to be looking at hdmi_mode and the overscan_ settings. The changes are made in /boot/config.txt. This is a plain text file that you can change with any simple text editor running on the RPi itself. Or, if you have used NOOBS as the installer, the NOOBS Recovery console (hold Shift when prompted at boot-time) has its own Editor for this file.
How To Ask Questions The Smart Way: http://www.catb.org/~esr/faqs/smart-questions.html
How to Report Bugs Effectively: http://www.chiark.greenend.org.uk/~sgtatham/bugs.html