WD TV Mini Picture Quality

Hi, I'm thinking about buying the WD TV Mini to play my AVI files, I normally play them on my Toshiba SD290EKB DVD Player but the picture quality at higher resolution, 720 by 576 can look real blocky and jaggy, awful actually.

The solution was to lower the resolution to 624 by 352 or 640 by 368, but the quality compared to being played on my computer is not that good. Would the WD TV Mini have better picture quality, could it be close to my computers play back with it's integated 780G chipset, thanks.