[PolloLoco]

Do you have a PMP to compare to? I have an Archos 605 and it's video quality is far superior to this phone's via TV Out.

Though I love the TV Out feature as a toy. I use Coreplayer with the direct draw setting. You don't get the blue flicker, but the video might be slower if your file is too big. Also - on TV Out, blocking in dark scenes is much more obvious due to Coreplayer's inability. If you look closely at your phone you can see what I'm talking about. This was obvious while watching a downloaded preview of "The Dark Knight".

That said, Coreplayer's next update (not released) supposedly already has a fix for the blue flicker. Also - I watched Hellboy and another movie, both 700 meg downloads via TV out and the current "direct draw" and they looked great. Certainly better than VHS, but well below DVD or even PMP standards. The image is slightly washed out, not too clear.