Yeah that's just how the screen looks. During video playback there's just a lot of saturation. And also during dark scenes, the Photon doesn't do too well. Almost impossible to see anything in some cases.
I compared it to the Evo, Evo 3D, and Samsung Charge, and the Photon came in last when it came to video quality. If you watch a lot of video, i'd return it and wait for the Galaxy or consider getting the 3vo.
Though the Photon does win out in other features such over the 3vo such as speaker volume and apparently call reception. I can't speak for the cell reception. I live in a major city, and none of the people I know have had reception issues with their 3vo.
Should be an announcement for the Galaxy on Tuesday during Samsung's press conference.