I actually have a similar problem with my Toshiba 26HF84. Except the lines aren't flickering, and it shows up mostly in reds. I solved the problem by getting a DVD player that has HDMI output, and I use that, and the lines are not there, the picture is great. But I tried the component inputs...
I have that TV, and it depends what you're watching. If it's a DVD (assuming it's amamorphic widescreen) always ALWAYS use Full. if it's anything else that's enhanced for 16x9 tvs (anamprphic) se full. If the image is not 16x9, Full will stretch it the full width and things will look...
I have the exact same problem with my Toshiba 26HF84 CRT. (horizontal lines) Only it's with pretty much everything, not just animated things. It's extremely distracting and very disappointing. It's mostly in darker, or red areas. I figured it might be because I have a terrible $50 DVD Player. So...