Found my own answer elsewhere in a good write up, thought I would share:
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It surprises me, now that we are in the HD realm (where the image is more NOTICEABLE than ever), that people continue to misunderstand the reality that is ORIGINAL FILM GRAIN (
It's not because of the PS3, or any other Blu-ray player, HD-DVD player, DVD player, LaserDisc player, VHS/Beta player... etc, rather the various levels and visuality of film grain is -intentional- from the program's director and/or director of photography.
Film is not supposed to look like 'video'. It has inherent grain, and the levels of grain are there primarily because of the way the film was shot or processed in the studio's lab. Rarely is it because the source copy was overly processed in the disc release.
There are gobs of movies that have higher -more deliberate- levels of grain, because the director WANTS it to look more 'grainy'. Look at the popular film 300 - its grainy no matter what format you view it in. Same with the music documentary U2-Rattle and Hum, or the film version of Miami Vice... etc, etc.
The other points (that Skyhawk etc) mentioned above relate to your home viewing settings on your TV, projector, disc player, and will perhaps augment the grain even more (make it look worse). But the original content can have a HIGHER LEVEL OF NATURAL FILM GRAIN regardless of your other viewing settings.
Get use to film 'grain', and enjoy the film!
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