That's normal, but with upconversion and the right filtering it will look good. I know a lot of people with STBs that think there are only a handful of DVDs that look good on larger displays, to me they almost all look good (some better than others). Now that IS a scaling issue, when you upconvert then scale to your display (usually you'll convert to a higher resolution than your display, if possible) it makes a huge difference. I mean, you take an image at 720x480 and scale it to 1920x1080 the pixels gotta come from somewhere (not the pixel fairy), having a good control of how it adds the missing pixels to the images is the key to good image quality. Like I said, running the hardware decoders for the newer cards is pretty good as well, though not as good; but computers in general are better than all but the very best STBs (even those are dumbed down PCs) assuming some level of hardware, it's the allure of HTPC to me.