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I don't know if this is a known issue but the PQ for FIOS needs to be better then this, I have a 50 inch Plasma and 40 inch LCD connected via HDMI tested around 720P and 1080i display settings on the FIOS box but their isn't really that much difference both still have that SOFT look to it which ok you will not see distortion or pixelation but it looks to smooth, I hate smooth PQ.
I don't get a "HD" look to the movies which I am seeing on SHOWTIME or even HD regular channels it looks soft. I set the boxes to have "sharper image" in the settings but that only makes the menu look clearler not the actual PQ.
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There are many reasons for an unsatisfying picture, so the first thing to do is eliminate some of the variables. I would start with the TV and ensure that it is properly adjusted. While recognizing that there are individual differences and opinion, a common starting point is usually helpful. Check avsforum.com and look for the user forum for the brand/model TV you have. Owners will share their favorite settings, and you can tweak from there. Ensure your DVR/STB is outputting a signal compatible for your TV, some like 720 and others 1080. Try that first, and let us know if there is any improvemnet.