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I don't think you're looking too far into it. That grain is REALLY bad. Does your DVD player have any other connection options? I'm just wondering if there isn't a problem with either the DVD's connection or the TV's jacks. You should have a yellow video RCA jack in the back of your player as well. Try routing that into the TV - it's an older technology but it might help diagnose what's going on.
Check your TV's sharpness control (and your DVD player's too, if it has one) - that looks like it could also be a serious case of over-sharpening the image.
Unless I'm mistaken, nip/tuck like most modern cable shows is shot on HD, which means there won't be any film grain unless they digitally add it in.
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