I think it sounds more like a rendering issue.
The image isnt fully rendered until the next one is.
Its called tearing by game devs, and they fix it by syncronizing. IE, they force the screen to render fully before moving on, and do it syncronzed to get an even fps.
Im sitting here for the eleventieth billionth time with a fresh XP install, and since the owner of the computer wanted VLC installed so I abliged. Well, previously to installing VLC, everything worked, well, if not smooth, then as expected. After having installed VLC, trying to play any video tanks ...