The best output from the tv is 720p or 1280 x 720 pixels. If you want to use ken burns effects which zooms the photos you need to allow a little more, any more just wastes space. You may want to crop your pictures to suit your tv screen, so crop at 16:9.
I am building 16:9 albums in iphoto just for the tv, if you crop to 16:9 in iphoto it doesn't actually reduce the file size of the photo, to do that you have to use photoshop for example. Generally providing the file size is not enormous I don't bother reducing its size, if it is I usually go for 1600 x 900 pixels. Don't worry about dpi.
