What you need is a DVD player that advertises "upscaling". Most likely your TV resolution is 1366x768 if HD Ready or 1920x1080 if True HD. For normal DVD (PAL) it's only 768x576. The picture is magnified to fill the screen, that's why look ugly.

You have two options:
1: Get a DVD player with a better upscaler than the TV, or a third party upscaler box. Most TVs have pretty simplistic upscaler built in- that's why picture is pixellated. A Third party upscaler box has a better, more complex upscaler. Note however, that this still will not give you crystal clear image since DVDs are not HD by design. It will give you a less pixellated image, but detail is still blurry.
2: Time to sell off your DVDs and player and switch to Blu-Ray. Blu-Ray is encoded at 720p for most first-gen titles, and most recent titles will be 1080p. This ensures that you will be getting crystal clear picture.

And oh, either will be useless if you still using regular (red-white-yellow) cable. You must be using at least component (5 cable red-blue-green-red-white) to have HD image.

And lastly, Upgrading to B.yond you will not see much different on normal channels (clearer, yes, but that's because switched to digital, no signal loss). Only HD channels will be crystal clear, and even then only if the TV is connected to B.yond by HDMI.

This post has been edited by RAMChYLD: May 31 2011, 11:03 PM

If can, use HDMI. Otherwise use at least component, or even VGA (VGA is actually RGB with separate H and V sync signal and is still capable of 1080p).

Try to avoid using S-Video and Composite. S-Video is still only 768x576i50. Only difference between S-Video and Composite is it separates image signal from color pulse signal to reduce color crosstalk and supply better image than composite. But on a 1080p TV it will still result in blurry image.

This post has been edited by RAMChYLD: Jun 1 2011, 02:19 PM

I know. Note that I said "First Gen". When Blu-Ray first come out most of the titles are 720p. Now 720p Blu-Ray titles are rare and new titles are mostly either 1080p for film or 1080i for documentaries.