Reducing it reduced pixellation for me.
I spent a few hours playing with settings on my box one Saturday.
I had several recordings on my VIP and when I ran across a section of that vid that was pixellated, I changed to output resolution between 720p and 1080i. Back and forth. To my eyes in the several tests I did, changing to 720p did indeed reduce the amount of pixellation. It didn't cure it, but it reduced it. I can only attribute that to the receiver trying to take a sh*t signal and trying to turn it either into Gold or Platinum. The gold was better looking than the promised platinum.
I'm assuming you have a 720p display. If that is this case, then your discovery that the Vip622 set to 720p looks better on your TV says that the 622 does a better job converting 1080i (NFL HD) to 720p than your TV does. And that is definitely possible. If you have a CRT or 1080p set than I can't explain it, other than maybe all of the extra conversions (1080i to 720p back to 1080i or 1080p) are doing other things to the picture, such as losing detail, that the pixilation blends together and doesn't look as bad.
And you're right, when it comes to a bad signal, you can't polish a turd! Now back to watching more HD Lite