Sorry to hear that your having issues with the picture quality.
The message regarding "Stream Quality 0" doesn't have any effect on the steam quality, That's just a bug that is being looked into.
When you were watching the programs was this via the live streams or via the OnDemand Catch Up section ?
Sorry to hear that. Do you get this sam issue when using other apps? Also, are you able to change the picture settings for that particular HDMI channel on your TV? This may help make the picture clearer. Let us know if that helps.
NOW TV Team