I've tried two units so far (North American version) from my dealer and both behave the same. The "Film Mode" in the service menu still does not do anything as far as the "motion compensated de-interlacing" goes. My dealer can't confirm since they apparently have updated all thier televisions to DVI inputs and can't hook the BS1 to anything.
However, I had a stroke of luck about an hour before sending back the second demo unit. I found that if I use a progressive signal from the DVD player it defeats the effect. Being that the effect uses interlacing information I can see the logic there.
So the the good news is I can have it on and off depending on the input source without having to manually switch. The bad news is I've decided to not upgrade to the BS3. This of course would of been overkill for this veiwing area anyway and now I can afford another link room.
-Michael
Atlanta