Yeah I'm playing on component cables. The thing is, the graphics are only bad on the boat and for every half hour spent in teh game, you're only on the boat about 5 minutes. Once you go into the cabin, or train the dolphin or whatever area you go to on the boat, the presentation improves, but walking around on the boat is really atrocious.
I think they put it best in teh IGN review where Cassamasina basically said something like "It looks like there were two developers, one for underwater and one for the boat" It really does suck balls compared to the underwater elments.
Is it completely crazy to think that they might have intetionally made the boat portions suck so that the underwater parts seem better?
Ironically, (think I've said this but I'm not sure) I am a PADI Diver and can attest to the fact that, while prepping for a dive on the boat, IT SUCKS!!! Putting a wetsuit on, a BCD (Bouyancy Compensator Device), a weight belt, etc... sucks balls until you get into the water, then it is a whole new world (you love Aladdin, admit it).
So while the boat parts suck especially the graphics and walking, (walking around is just completely

in ridiculous. It's like they intetnonally made it horrible just to

with us) ALL of that makes up a VERY small minority of the game.
So not getting Endless Ocean b/c the graphics/gameplay of the boat parts suck is akin to not getting Twilight Princess b/c you don't like the start screen.
To answer your question, YES the graphics and walking mechanics suck bad enought hat they take away from the enjoyment of the game for a VERY SMALL MINORITY of the gameplay (above sea level), but NO, at the end of the day it really is a non issue. You won't cut your wrists b/c you won't be dockside long enough to go crazy over it.
Much more problematic for me is the fact you can't store species info while playing co-op.