Just installed my ATV2 yesterday and streamed some Netflix to test out. Tried a couple of TV shows and a couple of movies on my 42" Panasonic Viera. Not sure if this was to be expected - the picture was not terrible, but was noticeably grainier than if I had been watching regular TV as I normally do via FIOS. Is this due to limitations in what Netflix streams, or could it be due to the ATV output being only 720P? I did confirm from the ATV settings that the output is set for 720P. Had considered going with Roku for the available 1080 output - but went ATV since I am an Apple guy, but wondering if I made a mistake.