Poor DVD picture quality

[confused]

Hi everyone,
After taking full advantage of this site a couple of weeks ago and getting loads of help, i bought my new Dell 5150 with 17" flatpanel.

I'm well chuffed with it except the DVD picture quality. I'm running a Radeon X600 256MB but the picture quality is like watching a VHS. Everything else is great, games and general internet etc, its just the DVD seems blurred and shaking slightly.

I'm using PowerDVD software, but was wondering if my settings were off. I'm running at 1024 x 768 32bit colour, but have also tried 800x600 but no better.??

Just thought i'd try this site first, because i'm told that its pretty difficult talking to Dell support, so i'll try that second!

Thanks everyone