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Then why doesn't any DirectShow player have this problem?

VLC doesn't use DirectShow.

I'm aware of this. My point was: If DirectShow doesn't have this problem, what is VLC doing differently that it's managing to expose some kind of driver bug?

In my experience, your choices are: Switch to OpenGL rendering, which will have crappy performance, downgrade your video driver to a Vista one, which will kick out WDDM 1.1, and degrade performance all-around, or not use VLC.

It is driver issue. ATI has to fix it.

Then why doesn't any DirectShow player have this problem?