Thanks for the quick replies.
Randy - the dots were visible up to about 6-7 feet away. The "sweet spot" seems to be more 7.5 feet or more for the "dots" to blend in.
Mailiang - thanks for the info on banding. Very helpful info.
With a little experimentation I may have "fixed" or "adjusted" the issue that I was having.
It seems that my picture setting was on Standard, which in my opinion is a very bland setting. The picture is dull, and not very bright. And from what I found - these "dots" were visible.
Well, I changed the settings to anything other than Standard, such as Cinema, Vivid, Game...et cetera. The display is much crisper and the dots are not visible.
Regarding the banding - I think this still occurs slightly. Although the channel & connection is High Definition, I feel the cable signal is still compressed to a degree where the Hi-Def is not as crisp & clean as the Blue-Ray player provides.
So two things that I have learned. Watch my 60" in the optimal viewing distance 7.5-14 feet. Adjust the settings to other than Standard.
Any other tips?