Distortions every other second when playing mkv

Hello everyone,

I'm an old XBMC user from when it first came out on the original XBOX.
But when the XBOX started having issues with the increasing video quality of shows, I swapped to the Popcorn C200 and then a Boxee Box.
However neither of them even came close to the feel of a XBMC media center.

So now I'm finally back a few years later and it feels like coming home

System Specs

I bought a Zotac Zbox AD12.

Chipset: A68M
CPU: AMD E2-1800 APU Platform (dual-core) (1.7 GHz)
Memory: 4GB DDR3-1333 SODIMM
GPU: AMD Radeon™ HD 7340
SSD: OCZ AGILITY 3 2.5" 60GB

OS: OpenELEC 2.0 (stable) - 2.0.0 Fusion x86_64


Issue

Only problem I've had so far is that some of my Anime episodes get distorted every other second (details from one of the files is listed below).
I'm suspecting that since the file uses High@l5.0 that could pose some problems with DXVA. But the playback is fluid and the cpu cores are barely doing anything.
So it would seem that DXVA is working (almost).

I'm really gratefull for any assistance regarding this issue.

Thank you.


Extra information

General
Format : Matroska
Format version : Version 2
File size : 826 MiB
Duration : 23mn 47s
Overall bit rate mode : Variable
Overall bit rate : 4 856 Kbps
Encoded date : UTC 2011-12-02 23:49:18
Writing application : mkvmerge v4.0.0 ('The Stars were mine') built on Jun 6 2010 16:18:42
Writing library : libebml v1.0.0 + libmatroska v1.0.0
Attachment : Yes / Yes / Yes / Yes / Yes / Yes

Video
ID : 1
Format : AVC
Format/Info : Advanced Video Codec
Format profile : High@L5.0
Format settings, CABAC : Yes
Format settings, ReFrames : 12 frames
Codec ID : V_MPEG4/ISO/AVC
Width : 1 920 pixels
Height : 1 080 pixels
Display aspect ratio : 16:9
Frame rate mode : Variable
Original frame rate : 23.976 fps
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Title : AVC (1080p)
Writing library : x264 core 104 r1688kMod 0b36c6d
Encoding settings : cabac=1 / ref=12 / deblock=1:1:1 / analyse=0x3:0x113 / me=umh / subme=8 / psy=1 / psy_rd=1.00:0.00 / mixed_ref=1 / me_range=32 / chroma_me=1 / trellis=0 / 8x8dct=1 / cqm=0 / deadzone=21,11 / fast_pskip=0 / chroma_qp_offset=-2 / threads=12 / sliced_threads=0 / nr=0 / decimate=1 / interlaced=0 / constrained_intra=0 / bframes=16 / b_pyramid=2 / b_adapt=2 / b_bias=0 / direct=3 / weightb=1 / open_gop=0 / weightp=2 / keyint=250 / keyint_min=25 / scenecut=40 / intra_refresh=0 / rc=crf / mbtree=0 / crf=19.0000 / qcomp=0.60 / qpmin=10 / qpmax=51 / qpstep=4 / ip_ratio=1.50 / pb_ratio=1.40 / aq=1:1.10
Language : Japanese
Default : Yes
Forced : Yes

Audio
ID : 2
Format : FLAC
Format/Info : Free Lossless Audio Codec
Codec ID : A_FLAC
Duration : 23mn 47s
Bit rate mode : Variable
Channel(s) : 2 channels
Sampling rate : 48.0 KHz
Bit depth : 16 bits
Title : FLAC (2 Ch)
Writing library : libFLAC 1.2.1 (UTC 2007-09-17)
Language : Japanese
Default : Yes
Forced : Yes

Text
ID : 3
Format : ASS
Codec ID : S_TEXT/ASS
Codec ID/Info : Advanced Sub Station Alpha
Compression mode : Lossless
Title : ASS
Language : English
Default : Yes
Forced : No

Menu
00:00:00.000 : en:Prologue
00:03:40.220 : en:Part 1
00:11:58.718 : en:Part 2
00:22:06.242 : en:ED
00:23:26.405 : en:Preview
00:23:41.420 : en:END CARD