This is an issue that seems to have been ongoing since May with many users and I have yet to see a fix.
On many sites that use flash video, specifically Youtube and NHL Gamecenter, when you go into full screen mode, the video and the UI bar become very pixelated. This is obviously due to a scaling problem and I simply have no idea why this hasn't been fixed yet. Here are some examples for your reference:
Will this ever be fixed?????
Xircal, I believe many think this very common problem is due to a scaling issue rather than not having the hardware to handle the video... am also having this problem and very interested in a solution! Should really be fixed soon
Cphil19, you are abosolutely right. I had the same experience and I must say that you have described everything flawlessly. This has been the case since Adobe Flash plugin version 10.2. For me that was the last version that had no problems with upscaling. Fortunately there is a solution on youtube - you may use HTML 5 video Beta instead of flash most of the time.
Windows 7 x64
Intel HD Graphics with latest driver from manufacturer.