Is there a way to make this go away by playing with the picture settings? There is a function called Expert Mode which, according to the LG website "allows advanced users to optimise the image to a level not previously possible" Does anybody know what settings to change in order to solve this problem.
It's really frustrating reading about the 'wonders' of Full HD and TruMotion only to find that the image looks like crap because of this 'heat haze' effect.
Answer:
What you call a heat haze is actually artifacting. This is perfectly normal for free to air TV including the HD channels because the bit rate is far too low to give a good quality picture. On the SD channels you even get to see a lot of pixalation as well. It is like watching a youtube video.
Solution: watch a lot of Bluray DVD. Complaining to the TV networks wont help.
Full HD is only wonderful with Bluray DVD. Good thing you have a PS3 because it has a Bluray DVD drive thus you can watch Bluray DVD.
As for the PS3 are you using HDMI? You need to use HDMI connection for a good pic so get a HDMI cable.
If you are already using HDMI cable then what is the pic like with a Bluray DVD?
The PS3 is perfectly capable of giving full 1080p high quality video but only with HDMI cable.

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Does it look pixelated? If so it could be the signal and not your television. I was on a forum recently where they were discussing this problem and some of the experts said that it could be the signal from your cable company. A lot of times the cable company will split the signal to several different residences which will decrease it's power. This can cause that. You can contact your cable company and talk to them about it. They may say that it's your TV but if you insist they may come out and fix the problem for you (if they don't then tell them you're doing to Direct TV!)