Bad HD Video Playback

[JackLope]

I recently re-installed Windows Vista 64 and have since had problems with VLC. It was working great before with exception to it occasionally seeming to re-buffer or something when the screen would flash, get pixely for a second, but then continue on in HD.

I'm trying to play MP4 videos in HD. This worked before I reinstalled, but now I get VERY POOR playback quality.

Here is a screeenshot example of the 1080p video I'm attempting to play. The entire video plays like this. Do I need to change settings?