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According to a post on this thread TiVo told the OP that a software update to address the macroblocking issue on S3's was due for release by the end of this month (August).

persona1138 said:
<snip> And last but not least, I waited on hold for 30 minutes with TiVo tonight (I know the "put on hold" music by heart now), and was told that, a) engineering had nothing new for me, and b) TiVo IS releasing an update later this month that will address macroblocking issues (which isn't exactly my issue) - they said that since my issue is, quote, "similar", it might be "best" to wait for the update.<snip>
Although the OP's problem is likely a bad S3, AFAIK it's the first time TiVo has mentioned an ETA for an update to v8.3. It will be interesting to see the results!
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