Sony AVCHD files - frilly edges

[stevep98]

I originally posted this in a thread in the Mac-specific forum, but it's not really mac specific, so I am reposting here. Not sure if I should do that or not. Apologies in advance.
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I appreciate your support of mts/AVCHD files. There are more and more camcorders using this format.

I have been using vlc nightlies from this morning to play some of the videos from my Sony HDR-CX7 HD camcorder.

I notice the following problems:

1) The video doesn't display until about 2 seconds in - so I miss the start of the clip.

2) When there is movement within the frame, the moving object exhibits severe 'frilly edges'. I suspect this is due to a bug or incomplete implementation in the motion compensation code.

I have uploaded a clip exhibiting the behavior here:
http://steveparkinson.org/~steve/test/avchd/00225.MTS

Thanks!
Steve