It's most likely a Firefox bug, but I thought VLC users/devs should be aware of it:
Since version 3.6.12, Firefox launches a "plugin-container.exe" sub-process, for instance if you open YouTube.
This process was actually introduced in 3.6.4, but I probably went straight from 3.6.3 to 3.6.12 a few days ago.
I noticed today that some DVDs that play fine with Windows Media Center would be quite blurry in VLC, especially scenes with fast motions.
The blurryness disappears when killing the plugin-container process manually.
Firefox forum thread about the issue: https://support.mozilla.com/en-US/questions/762269