Color quantization/degradation problems with XPS M1730

Hi I bought my M1730 about three months ago and from day 1 I noticed that on areas where bright and dark colors try to blend on images and especially while playing media (dvd movies) there were extreme color degradation e.g. pixelation and color-banding as though my color settings were set to 8-bits or lower. The weirdest thing about my problem is that apart from media and images with bright and dark color blending everything else looks gorgeous, I can play my games on the highest settings and they run perfectly but when there is an FMV media/cutscene the video gets awful. Anyone else have a similar problem? Please Help.