I tested the videos on VLC and it plays exactly as you described, but I noticed one more thing: the deinterlacing is very bad, the even lines are not connected to the odd ones when there's moviment. I tested on PowerDVD 10 and it plays perfectly.
I use VLC to hear DTS CDs, but every time I start hearing a CD and every time the track changes I have to go to "Audio> Audio Device> 5.1" or I will be hearing the stereo downmix.