Quite complicated, I promised to keep the MCE machine as virgin as possible... Seems it won't be possible at all. Nevertheless, I have a FujitsuSiemens Scaleo E brand new thing and a Sony Bravia LCD TV and I am really depressed how different is the Live TV from Scaleo compared to the real TV broadcast on TV, both use the same coaxial cable, terrestrial analogue. I connect via VGA cable, Bravia doesn't have a DVI input, only HDMI, reduction DVI-HDMI didn't work. The VGA cable shouldn't be the problem since DVD plays great, better than my previous standalone player.
This topic is not about recorded/anyhow compressed TV, this is about why the bloody machine destroys what it gets.
I put it here to encourage you to test and post updates, I see that the solution differs from user to user. Good luck