Same here, the quality was no good for eg. Mark Russinovich's tech ed stuff where process monitor is shown (I'm talking about recordings though, not streaming). It was so across all the video links and devices in a shop I played around with.
I tried disabling flash from Manage Addons and updating Silverlight and now I get this (IE8 w7):
We have a Silverlight version but your browser doesn't have the right plugin or it might be disabled.
Want to Install the Silverlight 5 plugin?
We have a Flash version but your browser doesn't seem to have Flash or it may be disabled.
Want to Get the Adobe Flash Player plugin?