Good grief, I have been trying for ages to set up my AE500.
I use AVIA and still it's a bugger.
The only thing I can say is just try and twiddle with Contrast - Brightness - and maybe pixel clock if using a PC. Leave the sharpness where it is..I find that is best.
I did the flicker adjust by going into options and holding down the enter button and adjusting the flicker.
I am constantly fiddling with the settings and have decided just to let it be. Be careful not to lose detail in the blacks when adjusting the conrast and black levels.
The state of some DVD transfers mean that some films look great and some dont...this isn't down to your equipment! More to do with poor telecine transfers.
I think the AE500 is shipped with a pretty good setup...but be careful not to let it ruin the enjoyment of your movies...Guilty....
I've got an AE500 that i'm using with the Samsung 935 and i couldn't be happier. Picture quality is amazing using the DVI route, but you need to alter the picture setting (625/720/hdtv60) depending on the source material. I tend to use 720 for Pal films and HDTV60/1080i for ntsc. I haven't noticed this 'Judder' on Pal films yet, to be honest i dont' really want to.
This system is an upgrade from an AE100 connected to a number of different dvd players over the years, all of which fed the pj via the amp to a PRO-V on through a d-sub connector. only ever used component once with a Lecson dvd which didn't impress me.
Sky went in through an RGB to S-VIDEO converter then to the amp etc. Too much processing ruined the picture though. Now with the AE500 i'm using a high quality scart direct to the pj, this has improved the quality, shame about the content, but the footy is ok.
If you can, go with the DVI.