Hello,
VLC plays videos in terrible quality - overlay doesnt works. I tried setting deblocking, forcing DirectX, but no method seems to work (on my pc with nvidia gpu default settings = good). I tried even Nighty build / latest official. I guess something is not supported (DX10 or my Intel GMA 4500) by VLC.
In the Windows Media Player with FFdshow codecs video plays smothly and very very nice quality. Any ideas?