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Hello, This is generally caused by a processor glitch in the TV which a basic reboot will usually cure.
However it's worth it to try a hard reset, as sometimes the processor in the TV can simply have locked up.
The first thing you would try, is disconnect the set from power, then press and hold the power button on the TV itself (not the remote), for 10 seconds and release. Then plug the set back in, and also check that the power cord is connected tight at the TV as well. Press power once, and see if the native MENU's are still jumpy.
That's bad news I'm afraid and is a processor issue with the set. Have you tried re-pairing the Magic Remote with the TV?
I'm sorry to hear that and there are no settings or adjustments in the TV that will correct this- it indicates a processor issue. The TV's native MENU's supersede ALL settings or adjustments, and when the MENU's appear skewed, jumpy or erratic, it means the TV has an internal fault. Unfortunately the only thing on a user level you can try is to leave the TV unplugged from power for several hours or more- but even then, this is NOT NORMAL operation of the TV and is usually the shape of things to come. I would strongly suggest contacting the retailer for an exchange before the 30 day exchange period is over and you're left with having to deal with LG for a warranty repair (which could leave you without a TV for 4-6 weeks).