problem with video color fading

[billwazzu151]

Whenever there is a black area on the screen, instead of fading to color towards a color on the screen, it appears blocky and of low quality and then suddenly juts into the color, like my pc cannot display enough colors next to black.

i'm guessing it has something to do with the internal codec that VLC runs on, and i've heard some things about activating Xsharpen (but I am pretty new to all of this)

Thanks for any help you can give me!!!