Thanks for posting a reply to this. I would say I'm glad someone else seems to experience the same as me, but that seems mean! anyway, Here's where I'm at. I contacted the retailer (Amazon) and despite it being past the return date they sent me out a replacement set. However this set showed exactly the same effect. only this time there were other un-related issues with backlight bloom (see the actual what hifi product review & my other comments on that page) So I sent it back.
I decided that based on the two sets being identical, that there probably was no "fault" with the set. I have found that you can reduce the problem by turning on the intelligent frame correction but unfortunately that has less desirable effects. Having looked at films on Sky and compared them to the DVD in the same scenes the effect is much less prevalent. I suspect that all that is happening is that the tv is showing limitations in the in-comming signal, perhaps other sets / manufacturers have found a better way of covering up these limits. Remember that the pictures, even on DVD are still compressed and subject to losses. It's not like good old analogue telly signal that sends a whole new frame 50 times a second, you don't get something for nothing! The fact that this problem seems to be visible only under certain rapid / large picture changes, I think backs up this idea.
It's curious that very few other people seem to notice? It would be nice if someone could review how poor digital picture quality manifests itself. there seems to be very little on the net which is easy to understand. Just because it's HD doesn't guarantee its much better than SD if the bit rate is low.
Anyway, I've come to accept the "effect" as the set is out on it's own in terms of features and the picture, most of the time is stunning, and it doesn't bother my wife!
The only question is weather to go for a Blu-ray player - and will it be panasonic?
Hope you get your set back soon! and thanks for the comments.
J