This was my first sporting event in HD also. I had the same problem with the picture dropping out of focus. I was a little bummed, but then I switched back to the regular broadcast feed. The overall picture was so far superior in HD that the focus problem was more tolerable. ABC should have that taken care of for the finals. My wife had a bunch of her girlfriends over, so my receiver was on mute. I have no idea if there were audio dropouts.
It looked great, but not as impressive as the HD games in the first round on NBA TV. Much better camera angles though. The only real drawback is that it was a Leastern Conference game. Not to mention the series was already over after New Jersey won the first two in Detroit.