Gel, below is an outline of the process I went through to return a faulty Philips (bought mid-Dec '09, returned spring '10). It's copy/pasted from another WHF? thread but I hope it gives you some guidance as to your rights etc:
I telephoned Trading Standards/Consumer Direct (CD) for advice before contacting Philips or the dealer - it saves the latter two's flannel.
I explained to CD, using non-TV-geek-speak, that my TV had a beautiful, sharp picture
until an object/person moved, then it/they had a "'shimmering/watery outline' or looked like a 'wobbly rubber-band man'" ...
I then told the CD advisor that "when I switched off a picture enhancement setting called 'HD Natural Motion', then the 'shimmering/watery outline' etc ceased, but the picture quality would be 'soft and fuzzy'"...
The CD advisor said that I should contact the dealer, explain the problem(s) and offer it the chance to repair the TV. If the repair didn't yield a satisfactory result, then I was entitled to a replacement set or if it transpired that the particular model TV had design fault, then I would be entitled to a full refund, because the TV was "not fit for purpose".
I contacted the dealer, which asked me to contact Philips to request that it send an engineer to my home. Engineer arrived 48 hours later, took one look at the TV, noted its model-type, rolled his eyes and, in essence, said: "Not another one..." He tried a software update, but it only made matters worse. He explained that the TV needed to have any source-type device - ie PVR or BDP - tuned/setup to suit the TV. When I explained that my Humax PVR and Pioneer BDP had no such settings, he merely smiled weakly, raised his eyebrows and said that the Philips TV really needed to be hooked-up to a Philips-made PVR and BDP, which have the appropriate settings, to function correctly.
Confused? Probably not half as much as I was.
In short, the dealer's one-strike at repair was 'out'.
The CD advisor suggested that I should write to the dealer, using one of CD's template letters, stating that I wanted a refund (as the set clearly had a design fault) and that I required a response/refund within seven days. In fact, I simply telephoned the dealer, Sevenoaks (Bromley), quoted the Trading Standard's/Consumer Direct's "not fit for purpose" line and other types of legal-speak, then Sevenoaks assured me that a refund or exchange would not be problem, but asked me if they could first liaise with their local Philips rep to clear some protocols.
A few days later I returned the TV to the store and received a full refund.
Hope the above helps.