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Reason why is that the Optus signal is going through the TiVo and therefore being routed through the analogue to digital (mpeg encoding) circuitry, being written to the hard disk, being read from the hard disk and then being converted from digital (mpeg decoded) to analogue. Yes - even if you are not recording anything the TiVo is still writing a 30 munite live buffer which is why the TiVo can claim the title of "being able to pause & rewind live TV" that you might have heard it can do.
This however introduces a SMALL amount of loss of course. The other thing you can do is adjust the brightness, contrast, etc by accessing a telnet session from the TiVo via your network and typing at the command palmod_config and then following the prompts.
Yeah, it's kinda make sense.