The display is refreshed at 100Hz so the grey scale effect is quite stable. You only really notice that time dithering is going on if you move your head around a lot.

The brightest shade isn't dithered at all, so when looking at track info mode (for example) everything should look stable - although there are still some grey shades used to anti alias the text.

I can't say I've ever been distracted by the time dithering, or really even noticed it, so maybe something is up with your player.

Oh, and "End of Playlist" is exactly what you should expect until you get some content on there!

Rob