The quality shown in the second picture from a VM feed is the picture quality we have been suffering for months on the Sky Sports HD channels. See the separate thread titled Sky Sports HD. This is really not good enough.
Just a quick note of thanks to Stephen_L for helping to get this sorted out.
It turned out that the package I had bought did NOT include Sky Sports HD - only the Sky Sports SD channels, but because the web pages shown during the online purchase process wrongly showed that HD was included in the package VM have accepted responsibility for the error and sorted it out for me.
For me it's the Sky Football HD and Sky Main Event HD channels when I watch football. It may well be the other Sky Sports HD channels but I haven't used them. Several other people have complained about the Sky Sports HD channels on here. Surely must be an issue with the Sky feed not my box. Other channels are fine.