“My picture settings are not set correctly. It looks very bad, not HD whatsoever...what is the right picture settings to make it look clear?”
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Typically, upscaling artifacts (blocky picture when converting old standard definition to high definition) are caused not by the TV settings but by the input source or cable choice. You need to ensure that the video you are trying to display is HD and that the device playing them (Blu-Ray, HD-DVD, game console, cable box, etc) is HD. Then you have to make sure that your connection type supports HD, primarily this should be done with HDMI.
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