As for stutters - my experience is that it happens due to either swapping or some background tasks mucking around (usually it's not the task per se but the disk activity is generates).
Why do you want poor 720p30 quality like this??? iPhone 4 son of an apple: http://www.youtube.com/watch?v=ryuh5BwUuzY
Have you had a look at this bug report? https://bugs.maemo.org/show_bug.cgi?id=9753