If you have a newer version that came with the television, you have the latest firmware update. I wouldn't recommend updating (downgrading, really) the firmware on your TV.

For the images on your television, there are a few things you can do. One is to make sure that the resolution in the source (cable box, Blu-Ray player, etc) is set to a HD resolution. You might also consider adjusting (or turning off) the AutoMotion Plus feature in the menu or trying the settings for your model in the HDTV Picture Settings forum.

Does that help?