hey man the scaler in my Onkyo is a Faroudja, the model no. TX SR606. Also when using the scaler it creates that rainbow effect on some of the picture and getting the aspect ratio right can be pain. Its best for me to run direct to the TV and zoom in on the image.

You may try to experiment with a different scaler. Maybe run it through a DVD recorder (that is what many people do). You may however end up using the "zoom" on the TV but usually they don't put the best scaler's into TV's so that's odd.