Ok i have messed around with things and i still have the problem which makes watching TV unusable through the console, i haven't contacted MS yet as i wanted things to settle down first and give them a chance to fix this issue with a possible update, also looking at this thread there are loads of people with the same issue and some of them are in the states.
I have again gone back to the old way of viewing TV.
http://forums.xbox.com/xbox_forums/x...t/1625661.aspx
Things i have tried:
Snapping an app while watching TV = picture still freezes
Swapping HDMI cables around = Picture still freezes
Turning off 'Instant On' = Picture still freezes
Changing my cable box to 720P output = Picture still freezes
Swearing at it = Picture still freezes