Phillips 37PF7320A 37 in. HDTV-Ready LCD Television

I purchased this TV Sept 05 from Costco. Initially I had a problem with image quality in 480p (around edges of images) and some noticeable lag with quick movement. About a month later the picture went really south on me. In 1080i & 720p I have red and green pixel saturation. When watching standard definition in 480p there is noticeable pixel loss around the edges of small images especially in the background.
One HDMI input is connected to the cable box and when I first turn on the set the cable box states HDMI is blocked and set does not support HDCP (which it does). I tried a new box but it's the set. Phillips rep says it's the main signal board going out? Set displays static images well but that's not what you buy a TV for! Taking it back and getting a different brand.
When connecting my X-box to the component connection I get red and green Vertical bars? I have to use S-video connections. The set has 2 HDMI inputs and I would expect this to become standard on newer sets. The second component input only has a digital sound connection available, no RCA connections. So you really only have one usable component input.