Here's an issue I experience under both Linux/proprietary nvida drivers and a PC laptop under windows (radeon), with VLC (and, actually, also xine, mplayer).
Actually, the picture is very blurry when playing a DVD (not a divx or any other file format), with the TV Out (PAL TV). I tried with many different DVDs in several formats, different screenmodes, etc., with de-interlacing enabled or disabled. I actually have the feeling several pictures are superimposed (?). As soon as something moves, it becomes very blurry.
I guess this has something to do with interlacing, frequencies etc... It happens under Windows, Linux, nvidia tv out, radeon tv out, vlc, mplayer, xine... (But not with a dedicated piece of software that doesn't use libdvdcss like WinDVD).
Does anyone have an idea by any chance ?
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Thanks a lot for reading
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cheers !