VLC 1.1 really slow while playing videos

[chuy]

when using 1.0.5 I can play all SD/HD xvid/divx and SD/HD MKV files with no problem. when updating to 1.1RC1 - RC4. playback is REALLY jerky on all type of videos and plays a frame every second or so (the audio is fine though) and it seems like it slows down all my system (while moving the VLC windows around it has a tremendous lag on the movement of the window). Even when i uncheck "accelerated video output" it still plays the same. I am running all defaults on video playback with accelerated video, use hardware yuv->rgv and window decorations checked. I am using an NVIDIA NVS 440 using 3 screens, core 2 quad 2.4, 4 gigs of ram, Win 7 x64. VLC uses about 20-25% CPU. Is there anyone else that is experiencing the problems?