I recently switched back to Shaw (just on their standard 10mbit highspeed) and i'm noticing the same issue with netflix.
Tried playing a show and after an extended period of "testing line speed" it started playing... but the quality was complete shit. That was off of the TV.
So tried netflix on the blu-ray player... same thing, although the blu-ray shows the current down speed as it plays... and it can't crack 0.5mbps.
Ran a shaw speedtest, 25mbit down :S... same thing from speedtest.net
Able to download a service pack from download.microsoft.com and saturate the connection.
Tried netflix from the same computer that did the speedtests... and brought up the "Stream Manager" (when playing... hold ALT - Left Shift, and click the screen) to select the higher bitrate... it won't play at anything higher than 500kbps.