I can confirm it too
When playing xvid files there isn't a smooth play back in the video.
Parts of the picture will get blurry every so often.
It has more do with decoding because if you play back around the
position where this occurred, the picture is fine.
I don't get this problem in Smplayer.
** Changed in: totem (Ubuntu)
Status: New => Confirmed
** Attachment added: "Screenshot1.jpg"
http://launchpadlibrarian.net/13420188/Screenshot1.jpg
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Totem-gstreamer produces artifacts during encoding
https://bugs.launchpad.net/bugs/217196
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