I had this problem in the past. I'm trying to remember what I did to fix it, it was a long time ago, I don't think it was a driver problem. Not sure about this but I think some keys in Nero fixed it. Mpeg2/DVD plugin or windows media player plugin?
I also had the exact same problem, you can disable overlays to fix it as a workaround, and/or try the above. (Overlays accelerate video playback, and you'll also get video deblocking, usually 3:2 or 5:4, thus with them on the video playback will look nicer).
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