So, Alex's last day with Gamespot is today...the 24th of January? Hopefully Alex and Jeff along with the others that have left Gamespot will start up their own company. I'm there if they do it!
What connection are you using? HDMI? I was using HDMI running at 720p/1080i and had the same problem. Games looked great, but the movies sucked. I switched to Component cables and found they worked way better on my HDTV than HDMI. For whatever reason the HDMI cable I was using transfered a lot of grain in the picture, but the Component cables greatly improved my picture. If you wish to give Component cables a shot you can buy the PS2 cables. They will work on both the PS3 and PS2 since they use the same video output connections.
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