I asked a verizon rep about the problem today when I went to the store to pick up an HD dock. He said it was a problem specific to the netflix app with the razr, but netflix is aware of it and he said it should probably be fixed in a week or two.
I am kind of thinking that this is the case and hope Netflix fixes soon. Can not believe the picture quality HDMI out on Netflix from the RAZR...nearly equal to watching a DVD.