I never use VOD, but the few times I've tried, I've picked "watch later" and it ALWAYS gave me the crap quality version, even on allegedly HD content. It may look like HD (well, Dish HD to be exact, there's quite a difference you know) when nothing was moving, but otherwise, forget about it, it looked like SD (and I mean Dish SD, not real SD, which can actually look alright on a big screen if it's not bit-starved.)
This seems to be exactly the results that I get............
When I use VOD.........I generally choose "watch later". My internet speed is supposedly 2.0, but I doubt that it is that fast. I am seriously considering upgrading, but if it isn't worth the $$, then I won't.