My device is an HTC Rezound running Gingerbread.
What I'm seeing is that when I hold the device vertically (Portrait orientation) all video playback is perfect, but when I switch to horizontal (Landscape) I see the following.
1. Pauses and skips in playback - like the video is skipping in order to keep in sync with the audio.
2. Picture quality de-generates into random, blocky display, then fixes itself a few seconds later.
If I rotate back to the vertical everything is fine again.
Please let me know if I can provide any further detail to assist in debugging. Thanks!