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I recently upgraded to the LG 37LE5300, which is similar to yours with LED back lighting. SD looks much better on this set compared to the Olevia that it replaced. When I got the Olevia several years ago, after my CRT died I thought the exact same thing about SD. There is a gradual adjustment...

I just set-up a LG 37LE5300, (your set's little sister.) At the moment, I'm not sure it's a keeper.