On movie playback, I'm getting some "skipping" for no apparent reason. As the movie plays along (within one "track"), it hits a point and "skips" ahead (about 15 seconds). I can't seem to figure out why though. Initially I thought it was skipping over a "track change" but that is not the case. For some reason its like VLC is just running along fine, the needs to cache, and halts. I found that increasing the caching made the issue worse (pushed it out to 20 seconds and the thing basically froze). I'm not loading up the processor or memory by any means (about 10% utilization of CPU and still have 2Gigs of free system memory).
I'm opening the movie as a DVD (it has been ripped to my hard disk). The movie plays fine in WMP.
I have the system set to DirectX output for Video and Audio. This provided the cleanest picture (others were grainy) and allowed me to force 5.1 surround.