ntl broadcast uplink the majority of Sky Digital Channels from their broadcast site.
I suppose ntl get the channel before it is subject to passing through the airwaves, as I believe it uses the fibre backbone initially to the uplink site the DTT Feeds, these are sent from the channel provider for the DTT Channels on ntl like BBC, ITV, CH4, CH5, Hits, TMF, UKTV etc. Other channels have a different set up but ntl broadcast uplink most of the UK satellite channels.
I definately too find ntl picture quality far superior to anything I ever experienced on Sky its much crisper and cleaner.
It is true about a poor install affecting both systems, unfortunately for obvious reasons a lot of 'free' or £1 installs are done on the cheap. the dish is whacked up anywhere where it can 'kind of' get a signal leaving it open to the effects of weather and looking damn ugly in the process 'as long as Sky can save a bit of cabling I suppose!'. If I ever had Sky again (ie moving out of a cable area or ntl upsetting me big style) I would rather spend £150 on a Independant, get a choice of box (not crappy Amstrad) make sure the dish was hidden from my view and gaurded from the elements while maintaining a good signal.
Luckily on ntl I have had two installs both done very well, the installers asked where I wanted cables routing, gave a choice of colours for inside and out, Brown, White and black, they even had to run them right around the house to reach the living room and have done it very neatly.
I say ntl should use some underhand tactics as no doubt Sky would, and turn off some of the channels on Sky at random interval