Here is a pointless video I shot today at a car show. I was shooting in 1080 mode. Looks just as bad in any other mode as well.
Kodak zi8 Test Video - YouTube
And trust me, the original video doesn't look any better. I know YouTube can sometimes mess it up and of course any compression can make it worse. But again, it's looks just as bad in the original.
You can argue that I was moving it around too much or that the lighting was bad, but the picture quality is always this bad.
I even have a video lighting kit that I bought to make videos for marketing, but I can't get them to look any good. Even with proper lighting the quality isn't impressive.
There aren't many settings to play with. So I'm not sure how I could be screwing something up. But if anyone knows anything, I'm all ears!