  We set up the AdS/CFT correspondence for topologically massive gravity (TMG)
in three dimensions. The first step in this procedure is to determine the
appropriate fall off conditions at infinity. These cannot be fixed a priori as
they depend on the bulk theory under consideration and are derived by solving
asymptotically the non-linear field equations. We discuss in detail the
asymptotic structure of the field equations for TMG, showing that it contains
leading and subleading logarithms, determine the map between bulk fields and
CFT operators, obtain the appropriate counterterms needed for holographic
renormalization and compute holographically one- and two-point functions at and
away from the 'chiral point' (mu = 1). The 2-point functions at the chiral
point are those of a logarithmic CFT (LCFT) with c_L = 0, c_R = 3l/G_N and b =
-3l/G_N, where b is a parameter characterizing different c = 0 LCFTs. The bulk
correlators away from the chiral point (mu \neq 1) smoothly limit to the LCFT
ones as mu \to 1. Away from the chiral point, the CFT contains a state of
negative norm and the expectation value of the energy momentum tensor in that
state is also negative, reflecting a corresponding bulk instability due to
negative energy modes.
