Darth, What's His Name? said:
I don't see that at all. Either on my 24" wide screen monitor or my 58" tv.
I took a few screenshots to illustrate what I think dark_jedi is talking about. It's especially noticeable in the shot where Luke is running to Beru. The blue sky nearly disappears with the blockiness, and the blocks are "dancing" like crazy.
http://img339.imageshack.us/g/26606916.png/
EDIT: After reading dark_jedi's post about tv settings, maybe my monitor is just wonky. I'm gonna try them on my 42" plasma.