Okay, I just completed my "research" on this box. Scaling engine SUCKS big time (least I could say about it). To make the matter worse, it does deblocking of extremely blocky SD channels and applies noise filter on top of that to take the life out of SD content (if any is left after extreme compression).
That cheap Chinese STB of Dish HD is like TWICE superior in upscaling as instead of deblocking, it does noise shaping (keeping some blockiness and using it to fill missing pixels instead of deblocking and antialiasing).
Picture on TS+HD is extremely blurred and washed out on almost all SD channels due to the above phenomenon.
Also, de-interlacing on this Pace box is below par - blurs images further (due to inefficient algorithm used to de-interlace). This affect the conversion to 1080i also (as it first has to process each frames and convert to interlaced 1080i). Hence instead of reducing the pixel size from 576i to 1080i (or 720p) and adding missing pixels while processing the frames, its doing antialiasing to sort of blindly fill missing pixels to produce a similar picture as SD - this results in blurry image which though filters blockiness and zagged image efficiently, makes the image out of focus with missing details from the original SD (makes this conversion extremely lossy!).
Dish HD is FAR SUPERIOR in upscaling in contrast to TS+HD only converting the image to HD (after filtering blockiness and noise) and seems no other upscaling techniques are applied to "guess" missing pixels (we could revalidate this once we learn to somehow disable deblocking and noise filtering).
Adding the available bandwidth to Dish HD (they are underutilized - currently), having 300+ channels at disposal, readily capable of broadcasting more than 30 HD channels (currently mostly upscaled), is making them a clear winner. I wonder why is TS not even trying to compete with them!!!
I have got the refund claim FINALLY approved for Dish HD, however I am seriously thinking of keeping it and returning TS+HD instead!!! Above all, QUALITY means the most to me and currently Dish HD seems to be clear winner in terms of content quality (they seems to have resolved that SILLY Audio Distortion issue on most of the channels except PIX "HD" today, FINALLY). So if I could somehow bear their "sarkari" support, I may still keep the connection...