WHS + HD Homerun + SageTV Client = poor video A/V quality?

[j0000000000e]

Long time user of the HDHR with Media Center. I have been getting beautiful audio and video just like I do when using the digital tuner inside of my Sony LCD. So when I recently decided to check out the SageTV trail software, I just installed the SageTV software directly on my PC (not the client version). I was impressed with the ease of setup and audio/video playback quality.

So I then decided to take it one step further.
I removed the software off my PC. Installed the SageTV msi on the WHS (no problem)
Installed the HDHR software on the WHS (no problem).
Installed the SageTV client version on my PC (no problem)
Ran through the setup of the tuner and was again impressed how everything seemed to "see" each other.

I was then thrown back when I begin to watch Live TV. First off I can see a whole lot of digital artifacts in the video (i.e. Motion blur, pixelation) on all channels. I also can hear the audio being so flat and non-dynamic it is like I am listening to a mono soundtrack. I can't believe what I see and hear so I flip-flop back and fourth between the HDMI input and the digital tuner on my LCD. Major reduction in A/V quality!

I am so new to SageTV I am not even sure where to start with this. I didn't find anyone else mentioning anything like this.

Anyone out there with this setup that can shed some light on my problem?

Thank you.
Joe