I'm have the problem, but only in a very specific situation. I recently purchased the Nintendo Wii. The video through the 1070 works fine except in the Virtual Console mode. The regular Wii games work, but if you download Super Mario, etc, the vertical hold issue appears. I tried different inputs and also tried a component video cable with the same results. I have had to connect the video directly to my TV. I'm disappointed that I can't view Wii via component video (TV only has one component input, that is used by 1070) and I have to change the video input on my TV when changing from TV, DVD to the Wii.
Can't this be addressed with a software upgrade?