When I goto caliberate the move or when I'm playing start the party the camera feed when displayed on the tv looks real grainy, I heard the camera is low rez just making sure I dont have a defective camera.
Lighting does make a difference in what you can see, but it's still the camera.
Keep in mind, the camera's max resolution is only 640x480. That's really low res if you're on an HDTV of any decent size.
Have you ever zoomed way in on a picture and it all starts to look pixelated? Same thing with this camera and HDTV's. It's taking an image that's low res and blowing it up to HD. It's going to look a little grainy no matter how much lighting you have. There's tons of videos on youtube that show this.
Sony should really release a PS Eye 2 in HD or something.