I just downloaded the latest 1.1 rc2 34-1 from the videolan repo.

tried a normal sd xvid avi, tried 450p h264, tried 720p youtube mp4.
normal sd xvid plays quite chppy although a/v is in sync.
450p h264 and 720p youtube mp4 is totally unwatchable. Only audio plays.

mplayer plays SD xvid butter smooth and 450p h264 avi is watchable although video is slightly out of sync.

Is there something i'm missing?