What type of video input are you using? If you are using the HDMI port, this is your problem. You NEED to have the satellite receiver display SD content in 480i, otherwise you will receive bad PQ. HDMI does not support 480i, so you need to use component if you want to get both HD and SD over the same connection with good PQ. Native pass through is not only the aspect ratio (4x3 or 16x9), but also the resolution at which the picture is displayed (480i, 480p, 720p, or 1080i). You need to find a way to enable the box to display SD channels in 480i and HD channels in either 720p or 1080i (preference). I don't know how the settings menu is layed out with this box, but i KNOW for sure that it's possible. Also, you don't need the box to stretch 4x3 SD content, your HDTV should do that. HDTV's can stretch any 4x3 content to 16x9 as LONG AS the resolution of the picture is true SD (480i). My guess is that you are either using an input that doesn't allow the SD to be output in 480i (ie HDMI or DVI), and or your settings are not correct and you are telling the box to upscale all SD content (which is native in 480i, and this is how it will look best) to HD resolutions (either 720p or 1080i). Hope you can get this figured out.