I just watched my first show streamed from NetFlix (30 Rock pilot episode) and I am not impressed. The picture quality is about what I expected and was actually quite annoying to watch. I viewed it via my HTPC and not my Tivo, hence I was using the Silverlight software viewer. I have a 60" Sony HD RPTV so the level of noise and grain were amplified to the point where the image was intolerable to me. The audio also didn't sound right, most likely because it was probably reduced to stereo vs. AC-3 for the original HD broadcast. I held off watching a streamed program from NetFlix for quite a while because this is exactly what I expected to see and hear from this type of service. I'll just put the rest of the shows I want to watch in my queue and wait for the DVD or Blu-Ray disc to arrive. Even DVDs look better than the streamed crap on my HDTV.