I now have a Core i5-650 in a H55 motherboard and it is connected by VGA to my LCD TV (native resolution is 1360x768)
When watching a Blu-Ray with TMT 3 e.g. Wall-E you can notice bad aliasing affects when it is downsampling the 1920x1080 to the native TV output. This is obvious with the text which appears when you first insert the disc but you can notice the jaggies and combing effects when watching the movie. The same problem happens when watching over HDMI at 720p but doesn't happen when outputting at 1080i as the TV is doing the downsampling. Although a 1080i output does cause other artifacts.
It appears that TMT3 is using VMR9 as the renderer and this isn't doing any anit-aliasing of the video but is instead using nearest neighbour. On some media players you can choose the renderer and the problem only seems to exist with VMR9 not with EVR, VMR7 etc
I did previously have a motherboard that had a G45 onboard graphics chip and it doesn't have these problems.
The drivers that were released by Intel in the middle of 2010 fixed this issue,not sure exactly what build version it was