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It takes a lot of tweaking to get a decent picture out of this set, from any source. With the built-in Freeview, the most apparent problem is the mpeg blocking (that kind of square graininess you get with digital signals, especially around text). If that sounds like nit-picking: it's not. It detracts hugely from the crispness of the picture. You'll then find that you're adjusting all the other settings just to try and minimise this issue.
The 26" appears to lack the WEGA picture processing. On a £1,100 TV? My other Sony, a CRT KV-28HX15 has the WEGA technology, and it only cost £300!
As such, I can see little point in buying this V-series Bravia over the significantly cheaper S-series 26". I believe the S-series 32" is actually a bit cheaper too, and that surely represents better value.
Still, the colour and contrast are good, so is connectivity, and the sound is good for this type of TV - ironically that's the one thing that's usually criticised in the reviews I read before I bought this TV.
I'm still deciding whether to return it...