USE OPENGL OUTPUT !!! opengl output works best for me. im running Windows 7 64 bit and all video players show pixelated video - wmp, lightalloy, default vlc. directx output also does the trick but it requires that popy color scheme changes.
i have Windows 7 64bit RTM + ati 4870. tried reinstaling my samsung t220
drivers, tweaking monitor setting - not efect on pixelation.