On a default install with a new and powerful system, I had the same
video stuttering issues--particularly with HD. I did find, however, that
using VLC and just the CPU to decode the video looked just fine. So,
there was something in Unity not playing well with the GPU/driver.

I found two ways to fix my video stuttering problem in Natty:

1. Log in to Ubuntu Classic
This fixed pretty much all of my video problems.

2.Upgrade to the 275 nvidia driver. This made the stuttering under unity
much less severe and only noticeable if I try really hard to see it.

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https://bugs.launchpad.net/bugs/780007

Title:
  [Natty] Stuttering video playback

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