M_webber,

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.
http://forums.cnet.com/5208-19410_102-0.html?messageID=3035244&tag=forums06;search-results#3035244

Does that help?

--HDTech