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Thanks for the advice.  I think DVD playback is fine (I can't check now, I'm at work doing a 24 hour shift  ).  However it definately stutters in the same way when playing DivX movies from the laptop's hard drive.  I did try updating the drivers but it didn't help.  Creating the buffer didn't work either.

I am streaming over wireless, but the same thing happened when I tried it wired.  I'll try as reducing sound quality tomorrow.

Does anyone know of any decoders that are light on CPU or let you reduce image quality?