Denon AVR-2112ci video conversion blur/jitter

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Hi Everyone,
I'm new here and fairly new to the world moderately priced AV equipment and I hope I can get some help or information.

I have a Denon avr-2112ci reciever and I'm using its HDMI out to hook up to my 1080p LED TV. However, when it converts video to HDMI the output seems to be blurry/jittery (looking almost interlaced) and the colour slightly saturated.

This is most pronnounced when I'm using my Nintendo Wii (RCA -> Reciever -> HDMI Out). But its also clearly apparent with the text when using internet radio.

It's worth noting if I output the video connection via the yellow RCA output to the TV the image is absolutely fine for both the Wii and internet radio. Likewise if I run a bluray, xbox 360 or PS3 via HDMI Input the HDMI Output is crystal clear with no visual artifacts. As such I'm assuming this is due to the video conversion process. There are no audio problems at all.

My question is then, really, is there anything that can be done about this? Is it just the way it is? Is my unit defective? It could be there is just some setting buried somehwere I didn't change.

Thanks for your help!
 
Not trying to hyjack your thread, but I'm having a similar problem with the Denon 2310ci. The video jutters and blurs when playing my cable TV. But it's only on fast action sports like basketball. I have a pansonic viera 1080p tv. The problem started when I got my denon. The cable company has been out numerous times and said there is no problem from their end. When cable box is plugged direct to tv there is no problem. Receiver and cable box are all connected with HDMI cables. I'm thinking it might be a setting I have incorrect. Need help!
 

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