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Kathleen,

Here's what the Sony manual says about the TV Guide feature:

"TV Guide On Screen Use the Guide to find the program that you want to watch. The Guide allows you to organize and personalize the program listings.

The Guide is available with connection to your cable service or with over-the-air antenna signal. You must connect your signal directly to the TV's CABLE/ANTENNA input without using a cable box. If you are connecting an over-the-air antenna use a high quality antenna to receive high-definition programs.

To answer your question directly, no, you don't need to be connected to the Internet to get this TV Guide, you can receive it over-the-air.

And in the Picture Adjustments menu, you can turn Off Motionflow, which is the 120Hz feature.