I have a white MacBook from 2006, Core Duo 1.83 Ghz and 2 GB RAM.
When trying to play standard XviD files on my external display at 1920x1080 they are unwatchable due to skipping frames. This happens to a much lesser extent with x264 encoded mkvs. This problem has been ongoing for many months and I have tried the various suggestions on topics on this forum but to no avail. In the end I had to downgrade back to Leopard as I need this functionality from VLC. I recently tried again with a freshly formatted/installed hard drive and 10.6 but the same problem still occurs many months later.
It is getting to the point where some applications require me to upgrade to 10.6 and it is frustrating that VLC continues not to work in the same great way it does in 10.5 as it prevents me from making this upgrade permanently.