Ok thanks for all your responses but I issue is now resolved. I will share with you my experience since it could happen to someone else.
Sorry maybe I didn't explain myself well enough when I say latest image I was referring the latest VIX image with the latest software updates. The Pixelation only starting happening since I performed a software update and it was getting worse every day.
The only things I installed extra were the following
enigma2-plugin-cams-cccam.2.3.0_1.0_mipsel.ipk
enigma2-plugin-cams-mgcamd.1.35a_1.0-r3_mipsel.ipk
enigma2-plugin-extensions-autobouquets-e2_0.4_mips32el.ipk
Magic-HD Skin and Open Pli skin.
I tried turning off CCCAM and MGCAMD and the pixelation still occurred. I also tried restarting enigma and also full reboot and the pixelation still occurred. This was happening for a number of days every 8 minutes or so I would get a pixelation.
I went out to my dish and swapped over the connections on My LNB and the pixelation stayed with the TV downstairs, I swapped over my HDMI and leads and the pixelation stayed with the TV. I swapped over the TV's from upstairs to downstairs and the pixelation stayed with vuduo.
I was about to re-install the image again but then it was resolved by turning off the VU_DUO leaving for 5 minutes and turning on again. The box had never been powered off since the VIX OE3.0 was released (2 months or so ago). So I guess It must have had some sort of memory leak when an update was performed.
I have attached a couple of screen shots 1 of the pixelation and 1 of the signal strength.
Hope these comments helps future users who may have similar experience.

