ITunes HD Movies Scrambled on Brand New iMac 27"

So I bought my iMac about 3 weeks ago straight from the Apple Store. Running Mountain Lion. It is the latest 27" iMac, 4GB RAM, 1TB HDD, the lower spec of the two.
I recently bought the movie 'Drive' on my old white Macbook from around 2009 which also runs Mountain Lion. I bought the movie straight from the iTunes Store in HD, everything worked fine and the movie played back just fine.
So when I got the iMac and I re-downloaded everything from my iTunes account via iCloud, just to make sure the files wouldn't be corrupt, I tried playing back 'Drive' and the audio is fine but the video is just scrambled with a pink and green video output. The file couldn't be corrupt in any way as it was redownloaded straight from iTunes store.
Anyway I figured it could've been, so I went and downloaded Prometheus, a brand new release, also in HD. Needless to say, exactly the same output.
I'm positive it's nothing to do with the spec as a 2009 laptop can handle it..
I've seen a few people post about the same problem and somebody posted a youtube vid about it, it's the exact same as mine;
http://www.youtube.com/watch?v=KJIvtoJnAVQ
If anyone has a solution to this, please let me know. I'm currently hoping it's the iTunes version and will be solved with the next big update this month.
Thanks.

You mean my assumptions should be incorrect, just like my iMac should play copy protected HD video, and the disk utility should be able to image a disk without throwing a generic and meaningless error.
How many times do I need to try different variations of command-R (try googling command R bluetooth keyboard to see I'm not alone) to try and get to the recovery utilities? 50? 100? 150? Because I'm getting up there - it is just not detected early enough in the boot to prevent a 'full' startup. Yes, I have validated the recovery partition is present.
Maybe when I've got another couple of days to spend trying to get my new iMac working the way it should I'll waste another few hours trying to sucessfully restore to a fresh out of the box state.

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