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With Contour2 does anyone notice and dislike the TV display when viewing classic shows---for example, the Turner Movie Channel or Twilight Zone? In days long ago, most non-HD shows played poorly on an HDTV. Then it got a whole lot better. For me with my previous Cox cable boxes most older movies or classic shows filled the screen because you often had the choice of accessing some by their HD or non-HD channel - or even if they didn't fill the screen, you could press a button on the remote and make it "zoom" or "stretch" or "normal." Zoom did not give you a "bigger image vertically" or distort the view. It just filled the screen in landscape mode and with no distortion. I have many of those channels now where the display is like a huge square from top to bottom, and blackout columns on either side--in other words you can't make it go landscape. As such, you lose quite a bit of the screen shot horizontally and often the picture is distorted or blurry. Even when the picture is clear, it is chopped off. I've tried changing resolutions on my TV and Contour remotes, but no luck. Just asking if you had this problem and figured out a cure. I'm such a lover of old shows, this is close to a show-stopper for me and the opposite of an "upgrade." Seeing a bigger square version of Mickey Rooney and Judy Garland on the screen with one of his arms chopped off by the big square "view" is annoying!!!
I tuned to TCM to test your scenario. The image looks crisp and clean for classic movie standards. Mine too is not full screen. Perhaps TCM crops off specific cinema aspect-ratios to fit the screen top-to-bottom. I'm not familiar with this film to notice what would be cropped or missing from the sides of the set.
Your blurry video is what concerns me. If you only swapped out the cable box (Rovi to Contour), I'd suggest swapping the box again, but you've been since adjusting the TV settings. Review the setting on your TV again and disable any video processing, such as TruMotion or Real Cinema. Sometimes those "compensations" only blur or worsen the picture.
If you'd like, you could reset the TV to factory defaults. There are also lots of professional reviews of TV sets with recommended calibrated settings. Just search calibration settings with the make and model of your TV. Finding professional calibration recommendations is the first thing I do when researching TV sets.
If you provide the model of your LG, we could find a calibration for you. They're usually pretty good reads. However, I would caution, to actually do the calibration during the time of day when your concentration and patience is best.