I just bought an apple TV 2

I just bought an Apple TV 2, and when connected, the picture on my TV is very doll.  I know that the problem is not my TV, because it works great with my cable box.  is my apple tv faulty or it is a setting on my TV?? Anyone??

Welcome to the Apple Community.
Try altering the HDMI output setting.
What is it that you are watching.

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