Srinivas,
I can't really say it was like 3rd picture from #2418. That one looks horrible. More like the 1st pic from #2426. Very visible on blacks. Never noticeable from 8-10 ft but as I mentioned before, the fact that it is there ruins the picture quality especially the blacks.
Some say it's dithering, others call it calibration issue but I know for sure that you can't live with. Like a bad dream; one that you know will never materialize but irritates you because you had it and can't forget.
BLASTO,
Yes, I did find my cam but only in time to lose interest to take any pics. Not going anywhere that TV until it is replaced.
Called LG Mumbai sales head and he confirmed that my request has been forwarded. Will take 2-4 working days to replace.