If you are not connected to HD, pixelation can easily occur, especially if you are using an analogue connection. Here is a list, from best to worst, of how you should connect the video on your system.
1) BEST - HDI cable between the TV HDMI in and the sky box HDMI out. This is a full bandwidth digital audio and video connection.
2) BETTER - S-Video between your TV and sky box (with L & R audio)
3) GOOD - Component Video with L & R audio
4) STANDARD - single video cable (yellow) along with L & R audio
5) standard coax
These are listed, as stated, from best to worst quality. If you are not using a digital connection (HDMI), then pixelation can be expected.
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