I think I have exactly the same problem with my project. I have MPEG-1 video at 1400kbit/sec and 352x240 resolution. Looks just fine when I drag&drop the file into Windows Media Player, etc. When I put it on a DVD and play it using my Pioneer 434 on the TV, there's a LOT of flickering, especially around horizontal edges, and there are some obvious jaggies. This flickering persists when I pause a frame. I can take the same exact video stream and put it on a VCD, and it plays just fine in the Pioneer, no big jaggies or intense flickering. My theory is that some DVD players don't know how to handle 352x240 resolution material that's on a DVD, they assume that there should be another field in each frame. I think what's happening is that a blank field is being drawn right after the real frame, hence the intense flickering. I don't know if this is just an effect seen on some DVD players or all, haven't gotten out to Best Buy to do a comprehensive test yet.