Because that's the way Battlestar Galactica was shot. Grain is not bad. Grain is not something to be supressed. If there is artistic intent to have a gritty grainy picture, then it's correct.
That's like all the review sites that took points off of the 300 HD-DVD and Blu-ray release. The grain was added on purpose and it was a faithful rendition of artistic intent.
Your right. This picture does look like crap. its even going so far as to distort out. I need to wait for a commercial before i can know for sure wether it is network or feed related.
***EDIT*** Problem appears to be feed related. The commercials are coming up fine with no grain in the picture at all on both SD and HD. I've submitted a notification to have the network provider notified.
The network provider was notified as far as I know. After that I assumed they made the necessary adjustments. I watched the new episode on my DVR later that night and everything looked good.