I bought my PS3 a little under a year ago and I have always had trouble with the quality of the picture. I am using HDMI on a 22 inch LG HDTV. I usually play my games on the Xbox 360, where I actually use VGA and I had no problems there.
But with HDMI, I have had all sorts of problems. By default, I found the picture quality to look blown out. Text looks a bit garbled and graphics generally are a bit grainy. There is also some overscan too.
This is all solved when I go to my TV settings and go from "DTV" mode to "PC" mode. The graphics look great and no overscan.
However, there is one problem that bugs me about PC mode and it is how the colours look. They look dull, muted and washed out. The colour is all definitely there but the colours just aren't very vibrant.
Maybe it's just me, being a picky sod but if anyone has had this problem, I would love to hear from you. I have been trying to Google search this stuff for months with no joy.