Ok, seems running nice bright cartoons made the horizontal lines appear ALL the time.
Decided to watch a regular movie on this set to see what it looked like and noticed it only really showed up on bright screens, highly contrasting objects (i.e. brighter), or when scenes flashed in transition from one to another. So imagine two people, one wearing a light colored shirt and one wearing a dark shirt, the bright one had the horizontal lines the dark one didn't. Or say a dark rainy scene would look great until a lightning flash, then the lines were clear as day.
Brighter colored objects or areas would also have jagged edges, even if the lines weren't showing up very well.
Adjusting the user brightness and contrast controls had no effect on the issue. (but functioned properly)