I just got a Samsung TXM3296hf and I get banding in movies and games using component connections, less banding with S-video and none with composite hook ups. Note, the Samsung here is HDTV.
Banding is most apparent with dark, or hazy material. Ex: Socom interlaced mode has banding in-game not on menus, but no banding at all with progressive mode.
I just responded to you in "Can I hook my Sony Playstation 2 to a HDTV rear projection TV?", but maybe this is a better place. Can you define "banding"? I guess I'm a hi-fi newbie. I do get the slim rainbow of colors in the left portion of the top of the screen when playing SOCOM in 480p mode on my Sony KV-40XBR800.