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So, one second the scene will look grainy and the next second clear.
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That sounds more like MPEG artifacts than any sort of "enhancement". If the source is less than pristine, the E80 can't enhance it.
The one thing I can think of to try is the Video setting for "Hybrid VBR Resolution". Try changing it from "automatic" to "fixed". (You can achieve the same result by turning on "DVD-R compatible Rec" under the Disc menu.)
M.