Nokia Nseries :: HDMI Output Quality Has Dropped Too With Belle?

I played around with the HDMI output, after installing the new version of Nokia Big Screen. The video quality was miserable (I have a 720p demo video from Philips for testing purpose). I thought it was from Big Screen application, so I uninstalled it, but there was no change.

In short the screen is way too overscan (part of menu goes out of screen), the TV output format switch in Accessories has no effect (was this active only for analog output ? can't remember and I don't have an analog cable at hand to check), but the worst thing is the video quality is horrible for a HD image, resolution seems to be low, outlines are exaggerated and the contrast is too high, like the tonal range is missing.

I tried on two different brands LCD TV displays and on one of them on both native HDMI and DVI-compatible input HDMI. At the same time connecting my PC to the DVI-compatible input and playing the same video shows a perfect image.

I barely recall that the image was very good before, but I have my N8 only ~1,5 months old so perhaps I have not accumulated much experience on this. Still, even without background, I qualify the actual image quality as "miserable". What HD? Looks worse than SD.