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"...weird jagged haze..."-- Are you referring to straight edges taking on a serrated, "stairstep"-like appearance? If so, the slang term for that is "jaggies." And it's a result of interlacing errors--a challenge for the best of comb filters.

Do you have so-called "digital" cable? What you're describing sounds more like a software- or player-related problem, not a display issue. Why would the WEGA itself, an NTSC-only set, pixelate? Never noticed anything like that on mine. And, yes, they're good if pricey sets. Given that...