spiderplant said
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Sky do use MPEG. In fact for many SD channels, VM take the encoded stream off satellite and send it down the cable, so it's exactly the same data. I can only think you either used a different connection to the TV, or the Sky box was blurring the video so the blocks weren't as obvious.
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The only difference in connection terms is the HDMI lead.Thanks anyway for your reply.
alexcopeland
The set box was set at 1080i but I changed it to 720i when I noticed the pixelation problem.I'll change it back and look at the TV settings.
Thanks for the help everyone.