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£40 is for Eset Smart Security (AV, Firewall, AntiSpam) which, having tried for 3 months, I really wouldn't bother with.
Stick to Nod32 and look for a US reseller. I got my license for £16 by taking advantage of the good exchange rate (at the time).
Edit -...
Freeview broadcasts are generally of a higher bitrate and use more bandwidth than the same channels on Sky so that can account for "some" loss in quality but nothing too noticeable.
Have you had a look on AVforums for your TV? You might find that people have tweaked the settings to improve the...