Is It Safe To Say This Video Shows Severe Clouding On Week Old TV

Yea it's cloudy in there looks like your contrast maybe brightness and color saturation are way high also. Only real accepted cure for panel cloud is a new panel
that can be caused by assembly faults crappy panel or shipping damage. Some say they have fixed that by rubbing the panel with moderate pressure in the affected area
there is a long contentious thread here on AVS about that personally I would return it for exchange maybe you will get a good one, ( they can't fix it without putting a panel in it not worth fixing) or get a credit and buy another brand had I had a Dynex fail after only two years replaced it with a Toshiba I like better. Dynex and Insignia are both made by Hisense at least right now. Toshiba makes 24" and a 39" 1080i sets I don't know if BBhas them 39L22U 39" class LED TV24L4200U 24" class LED , no affil.
Edited by tubetwister - 3/5/13 at 10:18pm

Why play with it and risk anything. Just exchange or return it.

Eric3316 is right - why risk scratching or damaging the panel when you can still return it? If you try massaging the panel and you damage the screen in any way, you're stuck with the set since they obviously won't take it back. If you can still return the set, do it while you can. Don't risk it.

I would agree since you still have time to exchange it why risk a fix that even if it works may be only temporary . If it works you know it will re appear the day after your warranty expires that's how it works

you will most likely experience moderate to severe amounts of clouding on all 30-40 inch TVs because these are "consumer size" TVs and are most (if not all) TVs in this size range are cheaply made, and use C-grade panels and electronics. Unfortunately, brand name manufacturers don't start making "premium sets" until the 46 inch range, such as Sony, LG, Samsung, and Panasonic.

You could do a few different things:

Return and get a replacement of the same set, Insignia is a Best Buy brand so exchanges should be quick and painless. Or try the pressure technique, however that did nothing for my 39'' TCL.
Return and buy a small Panasonic plasma, while not ideal for computer use because of burn in, will produce much deeper black levels and will eliminate all clouding issues.
Return and purchase a slightly larger, premium 46/47 inch set such as the Sony HX750/HX850, LG LM6700/7600 etc which will have a better panel and have significantly less clouding.

Unfortunately the third option will triple or quadruple your purchase price but whatever way you go, i wish you good luck!

EDIT: Darnit, i knew i should of watched the video. THATS HORRIBLE CLOUDING LOL! Return that TV ASAP, NO amount of "massaging" will fix that! haha