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post a small clip, we'll tell if its ok
what i was trying to say above is things don't look the same on a flat panel lcd as they do on a crt (like a tv)
The pixels get blended together on a crt and really hides much of the "lines on the edges of the people, mostly in faster motion" as you say.
So on an lcd flatpanel you will notice this much much more as I had the same reaction as you are having now.
I really doubt there is anything wrong with your hardware, especially if the picture is nice and clear on non motion scenes.
Post a raw avi and I'll load it up here.
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