HTTP h.264 File choppy playback

[cellplex]

Hi all. I'm not sure if this problem is related to the network share file playback problems or not, but here goes.

I have a QT 7 .mov file on my web server. No streaming just http access.

If I view the clip with QuickTime player v7 for windows it plays fine. QT7 player seems to wait about 3 secs or so, then start playing the clip. I can hit pause and move the slider around while the player downloads more of the file then resume playing it.

Now with VLC 0.8.5-svn nightly build I'm having terrible problems playing the clip. I have tried increasing the http cache to 3500 ms but this does not seem to help. Playback is very choppy and sound seems to drop out.
And then VLC seems to stop playing the mov although it appears it is still downloading. Any ideas on how to fix this, if it can be fixed ?
Is this something to do with the format and how VLC handles it?

Cheers.