It would sure make alot of sense if it turns out to be the HDMI cable. The video should be "passing-through" which means it is not being altered or touched in any way by your SC-25. I have almost the same TV, and my video looks great. I'll resolve to say it is the HDMI cable at this time and wait to see what the better one does.
As far as stand-by, my SC-05 always turns off completely, and never goes into any kind of stand-by mode. I have asked this question myself, and no one could ever figure out why I can't, so unfortunately, I can't provide an answer for you on that one.
Let us know how the HDMI cable turns out.
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