What device are you using on TV?
Sounds like you might have sound issues with videos that use DTS (or other advanced surround codecs). The fix is to install or re-install latest ffdshow (make sure it is the 32 bit edition even on 64 bit systems) then re-install TVersity.
With regard to image quality, I suggest re-running the system performance test (check the transcode section in the settings page). It may be that your system was mistakenly considered too slow for HD due to the banchmark being run while the CPU was busy doing other things.
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