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When I fastforward .mkv files pisture gets glitchy and somehow "cubical" and sometime crashes.

A blockish tendency is not unusual for some formats while seeking within a file. But you must understand this has little or nothing to do with the container and Matroska is a container.

You will need to provide more information regarding the format for audio and video within the container. This may be found in Stream and Media Information, Advanced and even then there may not be anything that can be done about this issue.

Fastforwarding was done by keyboard controls
Played Witchblade (Anime) but it happend to another mkv file also an anime (Full Metal Alchemist - Movie).
Info on Witchblade: -Removed unecessary

VLC Player latest

Stream 0
Codec: avc1
Resolution 640x480
frame rate 23.975640

Stream 1
Codec: vorb
Language: und
Channels: 2
Sample rate: 48kHz

General
Duration 0:23:39

Meta info:
Muxing app: libebml v0.7.6 + libmatroska v0.8.0
Writing app: mkvmerge v1.6.5 (Watcher of the Skies ) built Dec 7 2005

Vorbis Comment:
ENCODED_USING: Made by sweet v1.5b31
LWING_GAIN: 0.970

Statistic:

Input
Read at media 1687 kB
Input Bitrate 348 kb/s
Dewmuxed 145 kB
Stream bitrate 369 kb/s

Video
decoded blocks 56
Displayed frames (counting on pause but last 29000 )
lost frames 7

Audio
decoded blocks 142
Played buffers 142
Lost buffers 36

Streaming has no info

I have seen the Full Metal series and the movie but wasn't fortunate enough to find the movie in AVC. Had a heck of a time getting the whole series. Seemed to get hooked on this one.

There actually was a reported instance (more like lots of people) of a particular release of Matroska causing seeking and random crash issues for H.264 this was supposedly corrected. This was not only a VLC problem. Sorry I don't remember the particular version but the time frame is correct at about Dec 05. Given that the problem was an encoding issue it will take time for the files to disappear (if ever). I have only a couple of files on my machine at the moment and both are earlier than yours. Both show slow seeking and sometime a blochish tendency, but never crashes. VLC tries to stay current with Matroska so with this one any problems between H.264 and Matroska are resolved quickly.

AVC is new and we are all learning. There are always a few problems along the way and hopefully it will be what we have anticipated.

I hope this will be corected in future versions of VLC.
Files are coded correctly. Just downloaded matroska pack and mkv works flawleslly on other players.