Is this called pixelation? Is this fixable? Need some experts

First of all, it would help to look at my links at the bottom. I thought Aliens with its dark beginning and the probe would help explain this problem. Notice the picture in the left side of the screen where the light against the dark background makes the outside edge of the light look like Tetris blocks.

I've been through multiple threads, Google searches and everything else you can think of. There is still no definitive answer or fix that I can find, in my opinion at least.

I'm just wondering what is it that makes the edges of light areas mixing with dark areas that makes the picture look like this? I have to say "This" because I still don't even know how to describe it. Pixelated? Grainy? Blotchy? And how would one go about fixing it? As the light moves around the screen, it accentuates the errors on the screen that make my monitor look like it's made up of 200 little 1/4 inch squares.

Questions. Is this because of an LCD screen? Is this something to do with "true black?" Is this because of the way the video is encoded? Is this because the movie was made to run at a smaller format and I expanded it to 1920x1200? Is there a way to soften the lighting effects to reduce this problem. It seems like I never used to see or notice this on old DVDs but every newer DVD shares this problem. Blu Rays as well at least on my equipment. PC, PS3, Xbox 360. All share the same problem. My monitor is full 1080P and it runs like this for every movie.

If anyone could try to clarify for me, that would be great. This unfortunately is a digital copy of the movie because the only Blu-Ray player I have is in my recently broken PS3 but the PS3 suffers from the same problem.


Aliens Picture 1

Aliens Picture 2
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  1. Quick edit. I found another example. Notice the left side of the screen showing greenish squares.

    What is this??!!
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