I picked up a DV89 a few days back and it did exaclty the same via RGB on my CRT. Like horizontal ghost lines. Funny thing is after watching for a couple of hours they vanished and havent made a return (tested briefly with a few discs and all ok).
I realise this thread is quite old now but thought it worth mentioning I have the same banding problem when outputting component from my DV88 to my panasonic plasma. Have been using RGB for the past 12 months!