Video look terrible over HDMI vs. VGA

I have a Radeon card and am outputting via HDMI to my Samsung HDTV. The quality of everything looks fine to me, even video games. The only issue I see is video. When I output from a 6 year old PC to the same TV via VGA video looks perfect, when I play the same video in the new modern PC the video looks grainy with artifacts. I have googled and see people having issues that affect the whole picture, in my case the issue is only with video playback.
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Scott CSenior EngineerCommented:
Two things come to mind....

1.  It's possible it's your HDMI cable.  Try a different one if you already haven't tried.

2.  Update the drivers on your video card.

You didn't list the model of your video card.  Knowing that would help as we would know the different type of connectors on it.  If the card has a DVI output, try a DVI/VGA to your TV and see how the video looks.  It's possible there is something wrong with your HDMI port.

How does it look if you run HDMI to a computer monitor instead of that TV or another TV?

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The video is probably not HDTV quality...1080p (1,920 × 1,080 progressive scan)

Go to settings and reduce the resolution from 1080p (1,920 × 1,080 progressive scan)
down to  720p (1,280 × 720 progressive scan)
or 480p (720 × 480 progressive scan)

More on video resolutions read:
Could be the media player your using?
Which is?
Is this a mpeg4
Try using  windows media center if using windows 7.
or either of these open source
Pot Player
Media player classic BE

Pixelation could also indicate the video resolution is not matching the TV correctly and maybe you need just a couple of codecs.
Test your video and audio used in the video in Gspot codec analyser, even though it's an old tool I still use it to check any problems with playback. Open Gspot and drop your video on wait a tick and Gspot will produce a green line or red line  green line for codecs installed.
Then click on proposed solutions below
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Displays / Monitors

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