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Going back down to 12.10 does seem to remove the artefacts like you posted.
Yes, every driver above the 12.10 produces the artifacts. This said, for now, the 12.10 driver works flawlessly and fast for everything I do on my computer, so I'm fine with that, but I hope ATI/AMD will fix it soon.
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It does seem to be a driver problem - playing around with all of the edge detection and deblocking stuff present in catalyst control centre and on my monitor, which I find sometimes messes with blu-ray/upscaling quality, did not prevent the artefacts from occurring (though it did increase/decrease their visibility).
It's definitely a driver problem.
For playing Blu-Ray discs, the best is to turn off all those deblocking options, as they will damage the picture more than they enhance it.
Personally, in Video, I use following settings:
- In Color, basic colors set to "use Video Player Settings", and everything turned off except "Dynamic Range" set to "0-255". Don't forget to also set the "Pixel Format" in "My Digital Flat-Panels" to "RGB 4:4:4 Pixel Format PC Standard (Full RGB)". That's the way to get deep blacks and pure whites, and then you can calibrate your TV or Monitor based on those settings.
- In Quality, everything turned off except "Enforce Smooth Video Playback", "Apply current video quality settings to Internet video", "Use automatic deinterlacing" and "Pulldown detection".
- AMD Steady Video turned off of course.