I'm driving myself crazy trying to figure out if this problem is due to my TV not being good enough or if I've not got something set properly. I bought a brand new HDTV about a week ago, a Panasonic Viera 42" LCD 1080p 120hz (model number: TC-L42U25). So, this is actually happening consistently with just simply watching TV as well as having watched a blu ray movie on my new PS3. I literally just got the PS3 also. To be specific the blu ray I watched was Advent Children Complete, in case you have it too if it's helpful to know. I have HDMI cables for the cable and for the PS3. So here's what's going on: On the blu ray movie, most times when the camera is moving around a character or the character is moving at different paces, (there's no certain pace, it seems to be sometimes it happens when it's fast, sometimes it happens when the object/character is gliding across the screen) I see around the moving character/object all this pixelation. All these squares. Like there's this one part in this movie where a boy is standing still with rubble behind him, and the camera kind of pans around him with him in the middle and he is outlined in blocks of pixelation. I called Sears which is where I bought the TV from and they immediately said "sharpness." So I adjusted the sharpness to both ends of the spectrum and saw no difference. Then I got curious and changed this MPEG NR setting from off to on and back again and saw no difference. I don't even know what the MPEG NR is but it was the only thing that I could find to change on the TV. Then on the PS3 I changed some setting that has to do with video and game smoothness to the on position, but didn't notice a change. What is the deal here? Is this my TV not being good enough for these graphics or what? I have about 20 days left to return this TV if it's that, but I need to know for sure. I don't want to return it and get a different one and have the same problems with it being a setting all along.