If, by distortion you mean pixellation, then on live TV this is often indicative of signal issues. If a single box reboot has failed to rectify, then there's an underlying fault that will need VM to rectify.
You've not mentioned any specific channels or whether this is HD or SD - it won't alter the end result, but may help diagnose. If you have multiple boxes and only one is affected, then the problem is likely to either be the box itself or your internal cabling. Swapping the boxes around will quickly prove which one.
Once you've done that and know whether the box or wiring is the problem, you can either call to report your fault (150 or 0345 4541111) or wait on here for VM staff to respond.
You've mentioned movies OnDemand dropping, but is this only movies or all of OnDemand? There could be an underlying problem here too (which is potentially related to the pixellation) - but a good first check is whether you have problems with all of OnDemand. The network tech providing OD to your box is the same for all broadcasters except BBC iPlayer.
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