Thanks for the tip but using ATI here

I got given a license of 8 ultra which exhibited the same skippiness. I tried those beta drivers out last night, but they gave me no improvement, which is expected imo as the 8800gts doesn't hardware accelerate h264 decoding as far as I recall.
Either way though... TMT3 still working nicely. Sat down last night and watched the first half of the film in full HD. Was excellent quality and silky smooth. Shame PowerDVD is still having these issues on my machine.

Yeah beta drives did not work for me either but there is a new update as of 6/1. Wonder if its the live version of the Beta?

Update I need to find what exe I stopped in the background but it was TFservice.exe and low and behold I play fine.
Seems this belong to my anti virus software PC doctor.
I will play with it more tomorrow and get the name of the exe i stopped maybe this will help tech support.

Ok I turned of my AV PC doctor and it plays 100% of the time. Looks like spyware doctor was causing the issue. No longer skipping.