I tried 2.08.13 and it seems to have the same issues.
I did check video resolution, and have tried almost every combonation possible, including auto.
Apparently there is 3.03.13 now available, and I tried it as well and I am getting the same problems. I am starting to think that it is an issue with a codec. I will try a few other firmwares tonight to see what happens.
Anyone know how to update or roll back the codecs?